What Is the Cost Variance of Project Makeready Based on the Data

question 28

Multiple Choice

What is the cost variance of Project Makeready based on the data in the earned value table shown below?

• A) -$1,896
• B) -$1,096
• C) -$800
• D) -$406

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Definitions:

Manufacturing Costs

Expenses related to the production of goods, including direct materials, direct labor, and manufacturing overhead.

Product Costs

All costs that are involved in acquiring or making a product. In the case of manufactured goods, these costs consist of direct materials, direct labor, and manufacturing overhead. Also see Inventoriable costs.

ABC System

Activity-Based Costing (ABC) System is a method of allocating costs to products and services based on the activities that go into producing them.

Departmental Managers

Individuals responsible for overseeing specific departments within a company, focusing on performance, objectives, and management of departmental employees.