In Analyzing Manufacturing Overhead Variances,the Volume Variance Is the Difference

question 110

Multiple Choice

In analyzing manufacturing overhead variances,the volume variance is the difference between the

• A)amount shown in the flexible budget and the amount shown in the debit side of the overhead control account.
• B)predetermined overhead application rate and the flexible budget application rate times actual hours worked.
• C)budget allowance based on standard hours allowed for actual production for the period and the amount budgeted to be applied during the period.
• D)actual amount spent for overhead items during the period and the overhead amount applied to production during the period.

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Definitions:

Horizontal Merger

A merger between two or more competitors producing the same or similar products.

Gaskets

Mechanical seals that fill the space between two or more mating surfaces, generally to prevent leakage from or into the joined objects while under compression.

Market Power

The ability of a company or entity to control prices or exclude competition in a particular market.

Bid Rigging

An illegal agreement between parties to conspire to fix the outcomes of bidding processes to benefit all involved parties unfairly.