Rowe Corporation Reported the Following Variances for the Period Just

question 33

Multiple Choice

Rowe Corporation reported the following variances for the period just ended:
Variable-overhead spending variance: $50,000U
Variable-overhead efficiency variance: $28,000U
Fixed-overhead budget variance: $70,000U
Fixed-overhead volume variance: $30,000U
If Rowe desires to analyze variances that arose primarily from managers' expenditures in excess of anticipated amounts, the company should focus on variances that total:

• A) $50,000U.
• B) $70,000U.
• C) $120,000U.
• D) $178,000U.
• E) None of the other answers are correct.

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Definitions:

Clerical Costs

Expenses related to the administrative functions of an office, including salaries of office staff, stationery, and office supplies.

Standard Costs

Estimated or predetermined costs of manufacturing, selling, and administering a product or service.

Expected Future Costs

Projected expenses that a company anticipates incurring in the pursuit of its future activities.

Unavoidable Waste

Waste that cannot be prevented due to the nature of the production process or operational constraints.