Practical Capacity

Multiple Choice

Practical capacity

A) typically leads to an unusually large, unfavorable fixed-MOH volume variance.
B) will lead to an unfavorable fixed MOH volume variance if actual production exceeds planned practical capacity.
C) will lead to a fixed MOH rate that will fluctuate with demand changes.
D) will lead to an unfavorable fixed MOH volume variance if actual production does not meet planned practical capacity.