Rollo Company has developed cost formulas for the drivers of the following production activities: If the actual activity was 20 setups and the actual fixed cost for inspections was £28,000 and the variable cost for inspections was £5,000, the total variance for inspections is

A) £2,000 favorable.
B) £2,000 unfavorable.
C) £1,000 favorable.
D) £1,000 unfavorable.

Question

Rollo Company has developed cost formulas for the drivers of the following production activities: If the actual activity was 20 setups and the actual fixed cost for inspections was £28,000 and the variable cost for inspections was £5,000, the total variance for inspections is

A) £2,000 favorable. 
B) £2,000 unfavorable. 
C) £1,000 favorable. 
D) £1,000 unfavorable.

Quizplus · Accepted Answer

The Answer of Rollo Company has developed cost formulas for the drivers of the following production activities: If the actual activity was 20 setups and the actual fixed cost for inspections was £28,000 and the variable cost for inspections was £5,000, the total variance for inspections is

A) £2,000 favorable. 
B) £2,000 unfavorable. 
C) £1,000 favorable. 
D) £1,000 unfavorable.

Rollo Company Has Developed Cost Formulas for the Drivers of the Following