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(Appendix 11A)The Santos Corporation Made an Error When Selecting a Denominator

Question 61

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(Appendix 11A) The Santos Corporation made an error when selecting a denominator level of activity and chose a much lower level than was realistic.This error would most likely result in a large:


A) favorable variable overhead efficiency variance.
B) favorable fixed manufacturing overhead budget variance.
C) favorable fixed manufacturing overhead volume variance.
D) unfavorable fixed manufacturing overhead budget variance.

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