Tuesday, June 14, 2011

In a 2-variance analysis the flexible-budget variance and the production-volume variance should be __________, respectively

ACCOUNTING

Multiple Choice

Production-

Variances Spending Efficiency Volume

Variable manufacturing overhead $ 4,500 F $15,000 U (B)

Fixed manufacturing overhead $10,000 U (A) $40,000 U



In a 2-variance analysis the flexible-budget variance and the production-volume variance should be __________, respectively.

a. $5,500 U; $55,000 U

b. $20,500 U; $40,000 U

c. $10,500 U; $50,000 U

d. $60,500 U; Zero

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