(Appendix 11A)Sulema, Inc

question 17

Multiple Choice

(Appendix 11A) Sulema, Inc.repairs and refinishes antique furniture.Manufacturing overhead at Sulema is applied to production on the basis of standard direct labor-hours.Which overhead variance(s) at Sulema would be unfavorably affected if the cost of solvents used to strip the old paint from the furniture unexpectedly doubles in price?

• A)variable overhead rate variance
• B)variable overhead efficiency variance
• C)fixed manufacturing overhead budget variance
• D)fixed manufacturing overhead volume variance