The Fixed Factory Overhead Application Rate Is a Function of a Predetermined

question 87

Multiple Choice

The fixed factory overhead application rate is a function of a predetermined activity level.If standard hours allowed for good output equal this predetermined activity level for a given period,the volume variance will be (CPA adapted)

• A)Zero.
• B)Favorable.
• C)Unfavorable.
• D)Either favorable or unfavorable,depending on the budgeted overhead.

---

Definitions:

Quarterly Dividend

A payment made by a corporation to its shareholders, usually as a distribution of profits, every three months.

Par Value

The face value of a bond or stock as stated by the issuer, which bears significance for accounting and financial regulation.

Annual Return

The percentage change in an investment's value over a year, considering both capital gains and dividends.

Indefinitely

An unspecified period of time that may continue forever, without a predetermined endpoint.