Which One of the Following Would Be the Same Total

question 110

Multiple Choice

Which one of the following would be the same total amount on a flexible budget and a static budget if the activity level is different for the two types of budgets?

• A)Direct labour cost
• B)Indirect labour cost
• C)Fixed manufacturing overhead
• D)Variable manufacturing overhead

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Definitions:

Subsidiary Ledger

A detailed ledger containing all of a particular account's transactions, feeding into and supporting a main accounting ledger.

Job Order Cost System

An accounting system that assigns costs to specific production batches or jobs and is used in situations where items are distinct and made to order.

Underapplied Overhead

A situation where the allocated factory overhead for a period is less than the actual overhead costs incurred, indicating that the costs have been underallocated.

Applied Overhead

This refers to the amount of overhead cost assigned to a particular cost object, like a product or project, based on a predetermined rate or formula.