Find a volume variance will exist for dori in a month

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Reference no: EM132587131

Dori Castings is a job order shop that uses a standard cost system to account for its production costs. Manufacturing overhead costs are applied to production on the basis of direct labour hours.

Question 1: A volume variance will exist for Dori in a month under which of the following conditions?

Multiple Choice

Option 1: When the production volume differs from sales volume.

Option 2: When the actual direct labour hours differ from standard hours allowed.

Option 3: When there is a budget variance in fixed overhead costs.

Option 4: When the fixed overhead applied to units of product on the basis of standard hours allowed differs from the budgeted fixed overhead.

Reference no: EM132587131

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