Question
Merry and Pippin Say Keep up the Good Work (KGW) is in the process of evaluation their budget variances for the month of October. KGW
Merry and Pippin Say Keep up the Good Work (KGW) is in the process of evaluation their budget variances for the month of October. KGW budgeted their production would require 10,000 direct labor hours. They actually incurred 10,800 hours during the production process. Based on this information, which of the following statements is the most accurate?
A) There will be a favorable volume variance between the actual volume is less than the standard volume.
B) There will be a favorable volume variance between the actual volume is greater than the standard volume.
C)There will be an unfavorable volume variance between the actual volume is less than the standard volume.
D) There is not enough information to answer the question.
E)There will be an unfavorable volume variance because the actual volume is greater than the standard volume.
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