Misty Co's budgetary control report for last month is as follows： Fixed budget Flexed budget Actual results $ $ $ Direct costs 61,100 64,155 67,130 Production overhead 55,000 56,700 54,950 Other overhead 10,000 10,000 11,500 126,100 130,855 133,580 What was the volume variance for last month?
A、$4,755 (A)
B、$2,725 (A)
C、$4,755 (F)
D、$2,725 (F)
A、$4,755 (A)
B、$2,725 (A)
C、$4,755 (F)
D、$2,725 (F)
【参考答案及解析】
The volume variance for last month was $4,755 Adverse The volume variance is the increase in cost resulting from a change in the volume of activity, ie the difference between the original budget and the flexed budget. Volume variance = $126,100 - $130,855=$4,755 (A)
The volume variance for last month was $4,755 Adverse The volume variance is the increase in cost resulting from a change in the volume of activity, ie the difference between the original budget and the flexed budget. Volume variance = $126,100 - $130,855=$4,755 (A)