Asked by Peyton Tippens on May 21, 2024
Verified
Azzurra Corporation manufactures computer chips used in aircraft and automobiles.Manufacturing overhead at Azzurra is applied to production on the basis of standard machine-hours.Which overhead variance(s) at Azzurra would be affected in an unfavorable manner if fire and theft insurance rates increase by 25% unexpectedly during the period?
A) variable overhead rate variance
B) variable overhead efficiency variance
C) fixed manufacturing overhead budget variance
D) fixed manufacturing overhead volume variance
Fixed Manufacturing Overhead
Costs that do not change with the level of production, such as rent, salaries, and insurance for the manufacturing facilities.
Budget Variance
The difference between the budgeted or baseline amount of expense or revenue, and the actual amount.
Insurance Rates
The cost per unit of coverage set by insurance companies, determining the premium paid by policyholders.
- Evaluate the consequences of differences in fixed and variable manufacturing overhead costs.
Verified Answer
Learning Objectives
- Evaluate the consequences of differences in fixed and variable manufacturing overhead costs.
Related questions
Sobus Corporation Manufactures One Product ...
The Unitization of Fixed Overhead Costs Is Useful from a ...
If Variable Manufacturing Overhead Is Applied on the Basis of ...
The Following Standards for Variable Manufacturing Overhead Have Been Established ...
When the Fixed Manufacturing Overhead Cost Is Recorded, Which of ...