Answered: unfavorable volume variance

Business

Accounting

unfavorable volume variance

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter10: Standard Costing And Variance Analysis

Section: Chapter Questions

Problem 20MCQ: An unfavorable volume variance can occur because a. too much finished goods inventory was held. b....

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Question

The unfavorable volume variance may be due to all but which of the following factors? *

Machine breakdown.

Failure to obtain enough sales orders.

Failure to maintain an even flow of work.

Unexpected increases in the cost of utilities.

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Which of the following is a possible cause of an unfavorable labor rate variance? A. hiring too many workers B. hiring higher-quality workers at a higher wage C. making too many units D. purchasing too much material
An unfavorable volume variance can occur because a. too much finished goods inventory was held. b. the company overproduced. c. the actual output was less than expected or practical capacity. d. the actual output was greater than expected or practical capacity. e. All of these.
What are some possible reasons for a labor rate variance? A. hiring of less qualified workers B. an excess of material usage C. material price increase D. utilities usage change
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Which one of the following would not explain an adverse direct labor efficiency variance? A. Poor scheduling of direct labor hours. B. Unusually lengthy machine breakdowns. C. Setting standard efficiency at a level that is too low. D. A reduction in direct labor training.
Which one of the following would not explain an adverse direct labor efficiency variance? Group of answer choices Poor scheduling of direct labor hours. Setting standard efficiency at a level that is too low. A reduction in direct labor training. Unusually lengthy machine breakdowns.
What are some possible reasons for a labor rate variance? A.Hiring of less qualified workers B.An excess of material usage C.Material price increase D.Utilities usage change
Which of the following statements might cause a labor rate variance? Group of choices: Hiring of inexperienced workers Lack of supervision Faulty equipment Poor scheduling of work
Which of the following would produce a labor rate variance? A. Poor quality materials causing breakage and work interruptions.B. Use of persons with high hourly wage rates in tasks that call for low hourly wage rates.C. Excessive number of hours worked in completing a job.D. An unfavorable variable overhead spending variance.
Which one of the following is a disadvantage of Mass Production system? a. Higher level of inventory at all levels and hence higher inventory cost. b. Larger space requirements. c. Breakdown of one machine will stop an entire production line. d. Higher cost due to frequent set up changes.
An unfavorable variable overhead spending variance may be caused by the use of excessive quantities of variable overhead items. the payment of lower prices for variable overhead items used. the use of excessive quantities of the variable overhead allocation base. both the use of excessive quantities of variable overhead items and the payment of lower prices for variable overhead items used.
Although there are many reasons to this concern, one of the general reasons in gross profit variance analysis why an unfavorable sales volume variance occur is that the A. figures are not properly accounted for B. firm's product is not properly marketed C. accounts are taking too long to collect. D. finished product is overpriced E. raw materials used are overpriced