How to calcutate adjustment for productionvolume variance? And how do you identify if it's favorable or unfavorable?
Champion Motors assembles and sells motor vehicles and uses standard costing. Actual data relating to April and May are as follows:
Click the icon to view the data. Any productionvolume variance is written off to cost of goods sold in the month in which it occurs.
Read the requirements. balance accounts. Label any variances as favorable F or unfavorable U If an account does not have a variance, do not select a label.
April
May
tableRevenuesCost of goods sold:,Beginning inventory,Variable manufacturing costs,Cost of goods available for sale,Deduct ending inventory,Adjustment for productionvolume variance,Cost of goods sold,Gross margin,
