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The Fixed Budget Performance Report of Millar & Associates for the Year

Question 45

Multiple Choice

The fixed budget performance report of Millar & Associates for the year ended 30 June 2014 shows budgeted manufacturing costs of $390 000 and actual manufacturing costs of $410 000. The unfavourable variance of $20 000 must have been due to:


A) cost factors.
B) poor budgeting.
C) lack of supervision of workers.
D) cannot be determined from the information provided.

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