Efficiency variances focus on the difference between

a.

actual quantity used and standard quantity allowed for estimated activity

b.

actual quantity used and standard quantity allowed for units actually produced

c.

quantity allowed for estimated production and standard quantity allowed for units actually produced

d.

none of the above

2

If actual fixed overhead was $120,000 and there was a $2,600 favourable spending variance and a $2,000 unfavourable volume variance, budgeted fixed overhead must have been

a.

$124,600

b.

$122,000

c.

$120,000

d.

$122,600

e.

Some other amount not listed here