Question: When machine-hours are used as a cost allocation base, the item MOST likely to contribute to an unfavourable production-volume variance is a new manufacturing machine
When machine-hours are used as a cost allocation base, the item MOST likely to contribute to an unfavourable production-volume variance is a new manufacturing machine costing considerably more than expected. an increase in the cost of energy. a new competitor gaining market share. an increase in the number of direct-labour hours. strengthened demand for the product.
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