You have computed 4 direct cost variances and have completed a flexible budget analysis of the OH costs. Begin by focusing on the unfavorable variance for maintenance and repairs from the variable OH flexible budget. Consider carefully what might have caused that variance and how that cause might be related to other variances. Can you find evidence that the variance for repairs was actually a good thing?

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There are three primary causes of budget variance errors changing business conditions and unmet e... View the full answer