Reference no: EM132615032

Selected operating information on three different companies for a recent year is shown below:

Company                                                                     A                        B                          C

Full-capacity MHs                                        15,000               27,000             30,000

Budgeted MHs                                              12,500                  25,000           30,000

Actual MHs                                                   12,500                   26,000         28,000

Standard MHs allowed for actual production           13,000                  23,000           30,000

Denominator activity level for computing the predetermined overhead rate

Required:

Question 1: For each company, state whether the company would have a favourable or unfavourable volume variance. (Select "None" if no volume variance apply for a particular company.)