The following variances are reported for a blood bank. If two variances are chosen for investigation, which of the following variances should be investigated? Actual Budget Variance Medical Supplies $300 $500 $200 F Research 850 1,000 150 F Administration 480 300 180 U Blood Tests 2,400 2,000 400 U A. I and II B. II and III C. III and IV D. I and IV E. I and III

The following variances are reported for a blood bank. If two variances are chosen for investigation, which of the following variances should be investigated? Actual Budget Variance Medical Supplies $300 $500 $200 F Research 850 1,000 150 F Administration 480 300 180 U Blood Tests 2,400 2,000 400 U A. I and II B. II and III C. III and IV D. I and IV E. I and III

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead

Section: Chapter Questions

Problem 26Q: At the end of the current fiscal year, the trial balance of Big Apple Inc. revealed the following...

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QUESTION 6

The following variances are reported for a blood bank. If two variances are chosen for investigation, which of the following variances should be investigated?

Actual Budget Variance
1. Medical Supplies $300 $500 $200 F
2. Research 850 1,000 150 F
3. Administration 480 300 180 U
4. Blood Tests 2,400 2,000 400 U
A.

I and II

B.

II and III

C.

III and IV

D.

I and IV

E.

I and III

Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

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