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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