Rollo Company Has Developed Cost Formulas for the Drivers of the Following

question 111

Multiple Choice

Rollo Company has developed cost formulas for the drivers of the following production activities:
- If the actual activity was 20 setups and the actual fixed cost for inspections was $28,000 and the variable cost for inspections was $5,000, the total variance for inspections is due to

• A) favorable variance on fixed costs.
• B) unfavorable variance on fixed costs.
• C) favorable variance on variable costs.
• D) unfavorable variance on variable costs.

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Definitions:

Inertia Brake

A braking system that utilizes the inertia of a moving vehicle to activate the brake without manual application, often found in trailers.

Vehicle Battery Bank

A group of batteries connected together in a vehicle to supply electrical power, especially in electric and hybrid vehicles.

Transmission ECU

The electronic control unit responsible for managing an automobile's transmission system operations.

Self-adjusting

Refers to mechanisms or systems that automatically adjust parameters or settings to maintain or improve performance without manual intervention.