Figure 10-2. Highland Company's standard cost is $250,000.The allowable deviation is $\pm$10%.Its actual costs for six months are
Refer to Figure 10-2.The variance that is higher than the upper control limit is

Question

Figure 10-2. Highland Company's standard cost is $250,000.The allowable deviation is $\pm$10%.Its actual costs for six months are
 Refer to Figure 10-2.The variance that is higher than the upper control limit is

Quizplus · Accepted Answer

The upper control limit for Highland Company's standard cost is $275,000 ($250,000 + 10%*$250,000 = $275,000). The variance that is higher than the upper control limit is the actual cost minus the standard cost, which is $280,000 ($530,000 - $250,000 = $280,000). Therefore, the best choice is B.

Figure 10-2 ±\pm± 10%Its Actual Costs for Six Months Are Refer to Is

Figure 10-2 $\pm$ 10%Its Actual Costs for Six Months Are
Refer to Is