A Favorable Fixed Overhead Volume Variance Occurs If

question 114

Multiple Choice

A favorable fixed overhead volume variance occurs if

• A)there is a favorable labor efficiency variance.
• B)there is a favorable labor rate variance.
• C)production is less than planned.
• D)production is greater than planned.

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Definitions:

Product Cost

The total cost incurred to produce and prepare a product for sale, including materials, labor, and overhead expenses.

Period Cost

Costs unrelated to the direct production process, recognized as expenses in the period they happen, encompassing sales, general, and administrative expenditures.

Plant Manager

A professional who oversees all operations of a manufacturing facility, including personnel, production processes, and budget management.

Salary

A fixed regular payment, typically expressed as an annual amount, made by an employer to an employee, especially a professional or white-collar worker.