The unfavorable volume variance may be due to all but which of the following factors?

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50% found this document useful (2 votes)

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Answer Key - Quiz - Chapter 12 - MC - All Variances

Original Title:

Answer Key - Quiz - Chapter 12 - Mc - All Variances

Uploaded by

Jeanelle Angeles

Description:

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The unfavorable volume variance may be due to all but which of the following factors? *

Machine breakdown.

Failure to obtain enough sales orders.

Failure to maintain an even flow of work.

Unexpected increases in the cost of utilities. 

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    Which of the following is a reason for an unfavorable fixed factory overhead volume variance?

    An unfavorable fixed overhead budget variance results when the actual amount spent on fixed manufacturing overhead costs exceeds the budgeted amount.

    Which of the following unfavorable cost variances would be the least relevant in evaluating the performance of a production supervisor?

    Explanation: The least controllable standard costing variance is the overhead volume variance.

    Which of the following is not a reason standard costs are separated into two components?

    Answer and Explanation: The correct option is (d). If any differences or discrepancies brings in by the variances in the budget and requires managers to revise budgets closer to actual is not considered as the reason behind the separation of standard cost into two different components.

    Who are variances from standard costs are reported to?

    When standards are compared to actual performance numbers, the difference is what we call a “variance.” Variances are computed for both the price and quantity of materials, labor, and variable overhead and are reported to management.

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