16. In a standard cost system, the volume variance will be unfavorable when: A.
ID: 2523354 • Letter: 1
Question
16. In a standard cost system, the volume variance will be unfavorable when: A. actual hours are greater than the denominator hours. B. the standard hours allowed for the output of the period are less than the denominator hours. C. the standard hours allowed for the output of the period are greater than the actual hours incurred D. actual hours are less than the denominator hours. 17. 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. favorable variable overhead efficiency variance. B. favorable fixed manufacturing overhead budget variance. C. unfavorable overhead volume variance. D. unfavorable fixed manufacturing overhead budget variance. 18. The economic impact of the inability to reach a target denominator level of activity would best be measured by: A. the amount of the volume variance. B. the contribution margin lost by failing to meet the target denominator level of activity C. the amount of the fixed manufacturing overhead budget variance. D. the amount of the variable overhead efficiency variance.Explanation / Answer
16
In a standard cost system, the volume variance will be unfavorable when:
Answer:
B:.the standard hours allowed for the output of the period are less than the denominator hours
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17
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
Answer:
C:unfavorable overhead volume variance.
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18
The economic impact of the inability to reach a target denominator level of activity would best be measured by:
Answer:
B:the contribution margin lost by failing to meet the target denominator level of activity.
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