A department's three-variance overhead standard costing system reported unfavorable spending and volume variances. The activity level selected for allocating overhead to the product was based on 80% of practical capacity. If 100% of practical capacity had been selected instead, how would the reported unfavorable spending and volume variances be affected?

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In a threevariance overhead standard costing system the reported variances are typically related to spending efficiency and volume Lets analyze how th... View the full answer