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In a Standard Cost System, an Unfavorable Production-Volume Variance Would

Question 2

Multiple Choice

In a standard cost system, an unfavorable production-volume variance would result if:


A) There is an unfavorable labor efficiency variance.
B) There is an unfavorable labor rate variance.
C) Actual production is less than the "denominator volume" (that is, the volume level used to establish the fixed overhead application rate) .
D) There is an unfavorable fixed manufacturing overhead spending variance.
E) Actual fixed overhead costs are greater than budgeted fixed overhead costs.

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