Use the information below to answer the following question(s).Michelle Inc.uses a level 4-variance analysis of its manufacturing overhead costs, and has the following results for April.A.Budgeted direct labour-hours per unit is used to allocate variable manufacturing overhead.Fixed overhead is allocated on a per unit basis.
b.Budgeted amounts for April are:
C.Actual amounts for April are:

-If Michelle Inc.uses a two-variance analysis format then what will be the reported variances?
A)flexible-budget variance $100,000 U; Production-volume variance $200,000 U
B)efficiency variance $80,000 U; production-volume variance $200,000 F
C)rate variance $10,000 U; efficiency variance $120,000 F
D)rate variance $10,000 U; efficiency variance $80,000 U
E)flexible-budget variance $90,000 U; production-volume variance $200,000 F

Question

Use the information below to answer the following question(s).Michelle Inc.uses a level 4-variance analysis of its manufacturing overhead costs, and has the following results for April.A.Budgeted direct labour-hours per unit is used to allocate variable manufacturing overhead.Fixed overhead is allocated on a per unit basis.
b.Budgeted amounts for April are:
  C.Actual amounts for April are:
 
-If Michelle Inc.uses a two-variance analysis format then what will be the reported variances?
A)flexible-budget variance $100,000 U; Production-volume variance $200,000 U 
B)efficiency variance $80,000 U; production-volume variance $200,000 F 
C)rate variance $10,000 U; efficiency variance $120,000 F 
D)rate variance $10,000 U; efficiency variance $80,000 U 
E)flexible-budget variance $90,000 U; production-volume variance $200,000 F

Quizplus · Accepted Answer

In a two-variance analysis, the variances reported are typically the flexible-budget variance and the production-volume variance.

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