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Rollo Company Has Developed Cost Formulas for the Drivers of the Following

Question 109

Multiple Choice

Rollo Company has developed cost formulas for the drivers of the following production activities: If the actual activity was 20 setups and the actual fixed cost for inspections was £28,000 and the variable cost for inspections was £5,000, the total variance for inspections is due to
Rollo Company has developed cost formulas for the drivers of the following production activities: If the actual activity was 20 setups and the actual fixed cost for inspections was £28,000 and the variable cost for inspections was £5,000, the total variance for inspections is due to A) favorable variance on fixed costs. B) unfavorable variance on fixed costs. C) favorable variance on variable costs. D) unfavorable variance on variable costs.


A) favorable variance on fixed costs.
B) unfavorable variance on fixed costs.
C) favorable variance on variable costs.
D) unfavorable variance on variable costs.

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