Unit-level activities include (choose the most complete answer) A. Special Proce
ID: 2555135 • Letter: U
Question
Unit-level activities include (choose the most complete answer)
A. Special Processing
B. Special Processing and Factory Supervision
C. Factory Supervision
D. Machine Setup
E. Machine Setup, Special Processing, and Factory Supervision
2.Which of the following statements is false?
A. Flexible budgets can be used when there is more than one cost driver.
B. The fixed component of a budget for a cost has no effect on its activity variance. mee
C. If actual activity exceeds budgeted activity. the activity variancr for expense will never be favoravle.
the activity variance for an expense-will alwaye-be-umfavarable.
D. When there is a favorable spending variance. actual activity must be less that budgeted activity
E. To understand performance better, actual results should be compared to the flexible budget.
please explain. the answer of the mcq questions. the previous answer to this question was wrong. Thank you.
Explanation / Answer
1)correct option is "A" -Special Processing
unit level cost is incurred at the time each unit is produced .special processing will be done only at the time unit is produced .ALL other cost is either a batch level cost or facility cost.
2)The statement is false
If actual activity exceeds budgeted activity. the activity variance for expense will never be favoravle.
the activity variance for an expense-will alwaye-be-unfavarable.
It is always not necessary that if actual activity is more than budgeted activity ,the expense variance will always be unfavorable .it may be possible the expense actually cost less than budgeted resulting in favorable variance.
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