Acct 285 Exam 3 Part 2

ACCT 285 At Iowa state spring 2025, exam 3 review

Which of the following statements is FALSE?

The revenue variance is unfavorable if the actual quantity sold for the period is less than the expected quantity in the static planning budget

This is because revenue variance is not based on the quantity sold — it's based on the difference between actual revenue and expected revenue (from the static budget).

Which of the following would cause a company to have an activity variance?

change in the number of units sold

if a company sold fewer units than expected (from the static budget), which of the following statements is FALSE?

The activity variance for revenue would be favorable

VOHRV

(Actual Hours - Standard Hours) x Standard Variable Overhead Rate