Use the information below to answer the following question(s).Urban Body Products Ltd.manufactures body wash liquid soap.The controller has provided the following information and stated that standard costing is used for manufacturing, marketing, and administrative costs. There were no beginning or ending inventories of materials or work-in-process.
-Which of the following variances exists only under absorption costing?
A)spending variance
B)efficiency variances
C)sales-volume variance
D)variable overhead flexible budget variance
E)production-volume variance

Question

Use the information below to answer the following question(s).Urban Body Products Ltd.manufactures body wash liquid soap.The controller has provided the following information and stated that standard costing is used for manufacturing, marketing, and administrative costs.   There were no beginning or ending inventories of materials or work-in-process.
-Which of the following variances exists only under absorption costing?
A)spending variance 
B)efficiency variances 
C)sales-volume variance 
D)variable overhead flexible budget variance 
E)production-volume variance

Quizplus · Accepted Answer

Production-volume variance exists only under absorption costing because it arises from the difference between actual production and budgeted production levels, affecting fixed overhead allocation.

Use the Information Below to Answer the Following Question(s)