Rollo Company has developed cost formulas for the drivers of the following production activities:
- If the actual activity was 20 setups and the actual fixed cost for inspections was $28,000 and the variable cost for inspections was $5,000, the total variance for inspections is
A) $2,000 favorable.
B) $2,000 unfavorable.
C) $1,000 favorable.
D) $1,000 unfavorable.

Question

Rollo Company has developed cost formulas for the drivers of the following production activities: 
- If the actual activity was 20 setups and the actual fixed cost for inspections was $28,000 and the variable cost for inspections was $5,000, the total variance for inspections is
A) $2,000 favorable. 
B) $2,000 unfavorable. 
C) $1,000 favorable. 
D) $1,000 unfavorable.

Quizplus · Accepted Answer

The Answer of Rollo Company has developed cost formulas for the drivers of the following production activities: 
- If the actual activity was 20 setups and the actual fixed cost for inspections was $28,000 and the variable cost for inspections was $5,000, the total variance for inspections is
A) $2,000 favorable. 
B) $2,000 unfavorable. 
C) $1,000 favorable. 
D) $1,000 unfavorable.

Rollo Company Has Developed Cost Formulas for the Drivers of the Following