Which of the Following Statements About Overhead Variances Is FALSE

question 62

Multiple Choice

Which of the following statements about overhead variances is FALSE?

• A)The difference between the budgeted fixed overhead and the fixed overhead applied is the volume variance.
• B)Standard hours allowed are used in calculating the volume variance.
• C)The spending variance pertains solely to fixed costs.
• D)The total overhead variance pertains to both variable and fixed costs.

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Definitions:

Credit Terms

Conditions under which credit is granted by a lender to a borrower, including repayment period, interest rate, and other clauses.

Payment Arrangements

Agreements between two parties on how a debt will be paid back, often detailing the amount, frequency, and duration of payments.

Early Payment Discount

A discount offered by a seller to a buyer for paying an invoice ahead of the scheduled due date.

Purchase Discount

A deduction from the amount owed by a buyer to a seller, granted for paying an invoice early.