Asked by Silvia Sanchez on Jul 12, 2024
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Which of the following variances would be useful in calling attention to possibl? problems in the control of spending on overhead items?
vartable overheadspending vortance fixed overheadspending vortance A No No B No Yes C Yes No D Yes Yes \begin{array} { | l | l | l | } \hline &\begin{array} {l } \text {vartable }\\\text { overhead}\\ \text {spending }\\ \text {vortance }\\\end{array}&\begin{array} {l } \text {fixed }\\\text { overhead}\\ \text {spending }\\ \text {vortance }\\\end{array}\\\hline \text { A } & \text { No } & \text { No } \\\hline \text { B } & \text { No } & \text { Yes } \\\hline \text { C } & \text { Yes } & \text { No } \\\hline \text { D } & \text { Yes } & \text { Yes } \\\hline\end{array} A B C D vartable overheadspending vortance No No Yes Yes fixed overheadspending vortance No Yes No Yes
A) Choice A.
B) Choice B.
C) Choice C.
D) Choice D.
Variable Overhead Spending Variance
The difference between actual variable overhead costs incurred and the expected (standard) costs based on the actual level of production activity.
Fixed Overhead Spending Variance
The difference between the actual and budgeted fixed overhead costs incurred during a period.
Variable Manufacturing Overhead
Refers to the production costs that fluctuate with the level of output, such as utility costs or raw materials, which are not directly tied to individual units.
- Evaluate the management of expenses associated with manufacturing overhead by analyzing variances.
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Learning Objectives
- Evaluate the management of expenses associated with manufacturing overhead by analyzing variances.
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