Rameriz Company Erred in Selecting a Denominator Activity and Chose

question 55

Multiple Choice

Rameriz Company erred in selecting a denominator activity and chose a much higher level than was realistic. This error would most likely result in a large

• A)favourable variable overhead efficiency variance.
• B)favourable fixed overhead budget variance.
• C)unfavourable overhead volume variance.
• D)unfavourable fixed overhead budget variance.

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Definitions:

Add

The mathematical operation of combining two or more quantities to achieve a sum or total.

DS

An acronym commonly used for Decision Support systems, which assist in making decisions, often through the analysis of data.

Add

To combine one number or quantity with another to obtain a total.

Conj

Short for conjunction, a part of speech that connects words, sentences, phrases, or clauses.