6. assume that a company's planned level of activity is 1,100 hours and its actual level of activity is 1,000 hours. based on this information, the company's activity variances for its mixed expenses will:
a- all be zero.
b-all be favorable.
c-all be unfavorable.
d-be favorable or unfavorable depending on each expense's cost behavior pattern.

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eooyibo123 eooyibo123 · Answer 1 · 2021-05-12T20:08:55-04:00

Answer:

c-all be unfavorable.

Explanation:

Variance is defined as the difference that exists between an expected outcome and what actually happens.

When the frequency of an event is higher than predicted then it is a positive variance that is favourable all round.

However if the frequency of an event fails to meet expectations there is a negative variance.

In the given scenario a company's planned level of activity is 1,100 hours and its actual level of activity is 1,000 hours.

This shows a negative variance that is unfavourable to in terms of mixed expenses.