Rondelli Manufacturing Company employs a standard cost system. A planned volume variance in the first quarter of 2015, which is expected to be absorbed by the end of the fiscal year, ordinarily should

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Planned volume variances, whether favorable or unfavorable, are typically deferred at the end of the quarter in which they occur if they are expected to be absorbed by the end of the fiscal year. This approach allows for the variances to be allocated over the periods benefiting from the production, providing a more accurate reflection of costs and performance over time.

Rondelli Manufacturing Company Employs a Standard Cost System