Formidable Company collected the following information: Using the two variance method, what is the volume variance?
A) $6,000 (
B) $40,000 (
C) $40,000 (
D) $6,000 (

Question

Formidable Company collected the following information:  Using the two variance method, what is the volume variance?
A) $6,000 (
B) $40,000 (
C) $40,000 (
D) $6,000 (

Quizplus · Accepted Answer

Without additional information about the two variance method and the specific data collected by Formidable Company, it is impossible to accurately determine the volume variance. However, based on the given answer choices, option C is the only choice that represents an unfavorable (U) variance, meaning that actual volume was less than expected volume, resulting in a higher cost than anticipated. Both options A and D represent favorable (F) variances, indicating that actual volume exceeded expected volume, resulting in a lower cost than anticipated. Option B represents a variance, but without additional information about whether it is favorable or unfavorable, it cannot be accurately determined if it is the correct answer.

Formidable Company Collected the Following Information: Using the Two