Cornerstones of Managerial Accounting 4th Edition by Maryanne Mowen, Don Hansen, Dan Heitger

Exercise 1

A firm comparing the actual variable costs of producing 10,000 units with the total variable costs of a static budget based on 9,000 units would probably see
A) no variances.
B) small favorable variances.
C) large unfavorable variances.
D) large favorable variances.
E) small unfavorable variances.