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A company currently uses a standard absorption costing system. The fixed overhead variances extracted from the operating statement for November are:
PQ Limited is considering using standard marginal costing as the basis for variance reporting in future. What variance for fixed production overhead would be shown in a marginal costing operating statement for November? A. Total variance: $3,000 adverse B. No variance would be shown for fixed production overhead C. Expenditure variance: $5,800 adverse D. Volume variance: $2,800 favourable |