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The Fixed Factory Overhead Application Rate Is a Function of a Predetermined

Question 87

Multiple Choice

The fixed factory overhead application rate is a function of a predetermined activity level.If standard hours allowed for good output equal this predetermined activity level for a given period,the volume variance will be (CPA adapted)


A) Zero.
B) Favorable.
C) Unfavorable.
D) Either favorable or unfavorable,depending on the budgeted overhead.

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