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.
B. Budgeted amounts for April 2012 are:
C. Actual amounts for April 2012 are:

-What is the variable production-volume variance?

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.
  B. Budgeted amounts for April 2012 are:
  C. Actual amounts for April 2012 are:
 
-What is the variable production-volume variance?

Quizplus · Accepted Answer

Variable production-volume variance does not exist because it is related to fixed costs, not variable costs. Variable costs change with production volume, so there is no variance for them in this context.

Use the Information Below to Answer the Following Question(s)