Explain the circumstances in each of thenbspvariancenbspin, Accounting Basics

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Explain the circumstances in each of thenbspvariancenbspin

Labour Efficiency Variance=680 F

Labour Rate Variance=2040 F

Machine Efficiency Variance=2720 A

Machine Rate Variance= NIL

Fixed overhead expenditure var = 1700 (F)

Fixed overhead volume var = 1700 (A)

a) Explain the circumstances in each of the variance in hours and in costs. From the variances above, provide possible causes.

b) Explain the benefits of using multiple activity bases for variable cost absorption.

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Accounting Basics: Explain the circumstances in each of thenbspvariancenbspin

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Accounting Basics: Explain the circumstances in each of thenbspvariancenbspin

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