Azzurra Corporation Manufactures Computer Chips Used in Aircraft and Automobiles

Multiple Choice

Azzurra Corporation manufactures computer chips used in aircraft and automobiles.Manufacturing overhead at Azzurra is applied to production on the basis of standard machine-hours.Which overhead variance(s) at Azzurra would be affected in an unfavorable manner if fire and theft insurance rates increase by 25% unexpectedly during the period?

A) variable overhead rate variance
B) variable overhead efficiency variance
C) fixed manufacturing overhead budget variance
D) fixed manufacturing overhead volume variance