Company X presents the following information:

Sales = 2000 units Actual production = 1200 units Budgeted production = 1000 units Fixed manufacturing costs = $ 318213,7

What will
be the Production Volume Variance of Company X, in absorption costing and in
variable costing? Negative PVV = favourable adjustment to cogs (cogs decreases) Positive PVV = unfavourable adjustment to cogs (cogs increases)

Question

Company X presents the following information:

Sales = 2000 units Actual production = 1200 units Budgeted production = 1000 units Fixed manufacturing costs = $ 318213,7

What will
be the Production Volume Variance of Company X, in absorption costing and in
variable costing?  Negative PVV = favourable adjustment to cogs (cogs decreases) Positive PVV = unfavourable adjustment to cogs (cogs increases)

Accepted Answer

PVV (abs) = $-63643; PVV (var) = $0

Answer

PVV (abs) = $63643; PVV (var) = $0

Answer

PVV (abs) = $-63643; PVV (var) = $-63643

Answer

None of the other options is correct

Answer

PVV (abs) = $-53036; PVV (var) = $0

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Company X presents the following information: Sales = 2000 units Actual pro...

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