In Which of the Following Situations Will the Overhead Volume

question 33

Multiple Choice

In which of the following situations will the overhead volume variance be favorable?

• A)When more units are produced than were originally planned
• B)When actual overhead costs are less than the flexible budget
• C)When the predetermined overhead rate was set too low
• D)When there are units remaining in ending inventory

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Definitions:

Perpetual Inventory Records

A method of maintaining real-time records of inventory levels, where updates are made automatically for every sale, return, and receipt of merchandise.

Purchases Discount

Purchases Discount refers to a reduction in the price paid for goods or services if payment is made within a specified period.

Yearly Savings Rate

The percentage of one's income that is saved annually, often used in personal financial planning.

FOB Shipping Point

A term used in shipping contracts to indicate that a buyer must pay for the shipping costs and is responsible for the goods once they leave the seller's premises.