Question

The activity level variance for fixed costs equals zero when

The activity level variance for fixed costs equals zero when
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The activity level variance for fixed costs is came only when there is difference in production and static budget and this due to fixed cost charged on production on the basis of recovery rate and when production and static budgets are the same than allocation of fixed cost recovery is same as charged in static budget.

So, Answer =

The activity level variance for fixed costs equals zero when the actual level of output equals the static budget level of output.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A company has identified that total costs increase by 20% when activity level equals or exceeds...
A company has identified that total costs increase by 20% when activity level equals or exceeds 7,500 units. The variable cost per unit is constant over this range of activity. The company has identified the following costs at three activity levels,                                                  Units                            Total Costs High                                         11,000                         276,000 Middle                                     8,000                           240,000 Low                                          5,000                           180,000 Find the Fixed Cost Construct the total cost function.
A company has identified that total costs increase by 20% when activity level equals or exceeds...
A company has identified that total costs increase by 20% when activity level equals or exceeds 7.500units. The variable cost per unit is constant over this range of activity. The company has identified the following costs at three activity levels,                                                  Units                            Total Costs High                                         11,000                         276,000 Middle                                     8,000                           240,000 Low                                          5,000                           180,000 i) Construct the total cost function.
The total contribution margin at the break-even point: a. Equals total fixed costs b. Is zero...
The total contribution margin at the break-even point: a. Equals total fixed costs b. Is zero c. Is greater than total variable costs d. Plus total fixed costs equal total revenues
Variable costs equal fixed costs when nothing is produced, while average total costs equals average fixed...
Variable costs equal fixed costs when nothing is produced, while average total costs equals average fixed costs when nothing is produced. which one: True False
Describe how total fixed costs and unit fixed costs behave with changes in the level of...
Describe how total fixed costs and unit fixed costs behave with changes in the level of activity? Total fixed cost remains the same in dollar amount regardless of activity level. For fixed cost as the activity level decreases the unit level increases and as the activity level increases the unit level decreases
True Or False 1- Fixed costs should not be included in a flexible budget because they...
True Or False 1- Fixed costs should not be included in a flexible budget because they do not change when the level of activity changes. (       ) 2-To help assess how well a manager has controlled costs, actual costs should be compared to what the costs should have been for the actual level of activity. (       ) 3-The activity variance for revenue is favorable if the actual revenue for the period exceeds the revenue in the static planning budget. (      ...
Which one of these occurs at the financial breakeven point? O Net present value equals zero...
Which one of these occurs at the financial breakeven point? O Net present value equals zero O Fixed costs equal variable costs O EBIT equals zero O IRR equals zero O Net income equals zero
When the level of fixed costs is decreased, the break-even level of revenues: Question 21 options:...
When the level of fixed costs is decreased, the break-even level of revenues: Question 21 options: will automatically decrease. will automatically increase. may or may not be changed, depending on variable costs. will remain unchanged, because fixed costs cannot be altered.
Wangerin Corporation applies overhead to products based on machine-hours. The denominator level of activity is 8,700...
Wangerin Corporation applies overhead to products based on machine-hours. The denominator level of activity is 8,700 machine-hours. The budgeted fixed manufacturing overhead costs are $319,290. In April, the actual fixed manufacturing overhead costs were $325,380 and the standard machine-hours allowed for the actual output were 9,000 machine-hours. Required: a. Compute the budget variance for April. b. Compute the volume variance for April. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no...
Wangerin Corporation applies overhead to products based on machine-hours. The denominator level of activity is 7,300...
Wangerin Corporation applies overhead to products based on machine-hours. The denominator level of activity is 7,300 machine-hours. The budgeted fixed manufacturing overhead costs are $257,690. In April, the actual fixed manufacturing overhead costs were $262,800 and the standard machine-hours allowed for the actual output were 7600 machine-hours. Required: a. Compute the budget variance for April. b. Compute the volume variance for April. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT