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Kecks Bottling Company Produces 2-Liter Soda Bottles in Its Somerset

Question 39

Multiple Choice

Kecks Bottling Company produces 2-liter soda bottles in its Somerset plant using an injection-molding machine that has a theoretical capacity of 60,480 bottles per week. For the most recently completed week, the company's capacity cost management system reported an efficiency waste variance of 3,144 bottles. This variance indicates that:


A) Demand for 2-liter bottles was less than normal.
B) All downtime for maintenance and process irregularities was within the unavoidable range.
C) The company experienced unexpected downtime on the machine for maintenance or other process irregularities.
D) The injection-molding machine consumed more than the standard quantity of raw material allowed for the level of production achieved.

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