The fixed budget performance report of Boston Associates for the year ended 30 June 2019 shows budgeted manufacturing costs of $540 000 and actual manufacturing costs of $570 000. The unfavourable variance of $30 000 must have been due to:
A) cost factors.
B) poor budgeting.
C) lack of supervision of workers.
D) cannot be determined from the information provided.

Question

Quizplus · Accepted Answer

The information provided only shows a variance between budgeted and actual manufacturing costs without specifying the reasons for this variance. It could be due to a variety of factors, including but not limited to cost factors, budgeting accuracy, or supervision of workers.

The Fixed Budget Performance Report of Boston Associates for the Year