An Unfavorable Variable Overhead Spending Variance May Be Caused by

question 143

Multiple Choice

An unfavorable variable overhead spending variance may be caused by

• A) the use of excessive quantities of variable overhead items.
• B) the payment of lower prices for variable overhead items used.
• C) the use of excessive quantities of the variable overhead allocation base.
• D) both the use of excessive quantities of variable overhead items and the payment of lower prices for variable overhead items used.

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Definitions:

Fourth Year

Typically refers to the final year of a four-year undergraduate college or high school program, often involving advanced courses and preparation for graduation.

Total Revenue

The total income generated by a firm from its sales of goods or services, calculated before any expenses are subtracted.

Second Year

Refers to the second stage or level in an academic program, typically in high school, college, or university education, following the freshman year.

Market Share

The portion of a market controlled by a particular company or product, expressed as a percentage of total sales in the industry.