The fixed budget performance report of Millar & Associates for the year ended 30 June 2014 shows budgeted manufacturing costs of $390 000 and actual manufacturing costs of $410 000. The unfavourable variance of $20 000 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 variance could be due to a variety of reasons such as changes in prices, inefficiencies, or inaccurate budgeting. Without more specific information, it's impossible to pinpoint the exact cause.

The Fixed Budget Performance Report of Millar & Associates for the Year