The Formula for Computing the Overhead Volume Variance Is

question 151

Multiple Choice

The formula for computing the overhead volume variance is

• A) fixed overhead rate times (actual hours less standard hours allowed).
• B) variable overhead rate times (actual hours less standard hours allowed).
• C) fixed overhead rate times (normal capacity hours less standard hours allowed).
• D) variable overhead rate times (normal capacity hours less standard hours allowed).

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Definitions:

Inflation

An increase in the economy’s average price level.

Expansion

Expansion refers to the phase in the economic cycle where an economy is growing and experiencing increasing levels of output, employment, and income.

Actual Output

The actual quantity of goods and services produced in an economy over a specific period.

Demand

The desire and ability of consumers to purchase goods and services at given prices.