The Variable Overhead Spending Variance Is Calculated by Comparing

question 30

Multiple Choice

The variable overhead spending variance is calculated by comparing:

• A) Actual variable overhead cost incurred and the standard variable overhead rate times the actual amount of allocation base used during the period
• B) Actual variable overhead cost incurred and the fixed overhead cost incurred
• C) Actual price of direct materials and the expected price
• D) Actual direct labour hours used and the expected amount

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Definitions:

Reward System

A set of mechanisms or programs designed to motivate and recognize employees' efforts, achievements, and performance.

Profit-Sharing Programs

Programs in which employees receive a share of the company's profits, typically as a part of their compensation package.

Skill-Based Pay

A compensation system that rewards employees for acquiring and using specific skills, rather than paying them based on their job title or position.

Profit-Sharing Plan

A company program that gives employees a share in the profits of the business, usually in the form of bonuses or stocks.