The Difference Between the Actual Volume and the Budgeted Volume,multiplied

question 73

Multiple Choice

The difference between the actual volume and the budgeted volume,multiplied by the fixed overhead rate based on budgeted volume,is the:

• A)fixed overhead spending variance.
• B)fixed overhead price variance.
• C)fixed overhead efficiency variance.
• D)fixed overhead volume variance.

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Definitions:

Plantwide Overhead Rate

A single overhead allocation rate used throughout a manufacturing plant or entire facility, applied uniformly to all products or cost centers.

Activity-based Costing

A costing method that assigns overhead and indirect costs to related products and services based on the activities that generate costs.

Activity-based Costing

A methodology that assigns manufacturing overhead costs to products in a more logical manner based on the activities that incur costs.

Floral Bouquets

An arrangement of flowers, typically designed and wrapped for decorative or gifting purposes.