_____ Are a Result of the Design of the Product

question 40

Multiple Choice

_____ are a result of the design of the product and production system and generally?account for about 80 to 95 percent of the observed variation in the output of a production?process.

• A)Remedial causes of variation
• B)Common causes of variation
• C)Assignable causes of variation
• D)Special causes of variation

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Definitions:

Fixed Overhead Budget Variance

The difference between the actual fixed overhead costs incurred and the budgeted fixed overhead costs.

Predetermined Fixed Manufacturing Overhead Rate

A rate used to allocate fixed manufacturing overhead to products based on a predetermined activity level.

Fixed Manufacturing Overhead Budget Variance

The difference between the actual fixed manufacturing overhead costs and the budgeted fixed overhead costs.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred during production and the standard cost of variable overhead allocated for the actual production volume.