A Company Uses a Two-Variance Analysis for Overhead Variances, Controllable

question 33

Multiple Choice

A company uses a two-variance analysis for overhead variances, controllable and volume. The volume variance is the difference between the factory overhead applied at standard and:

• A)Total factory overhead per the flexible budget.
• B)Actual factory overhead incurred.
• C)Total factory overhead per the master budget.
• D)Fixed overhead incurred.

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Definitions:

Ball Joint

A spherical bearing that connects the steering knuckles to the control arms, allowing for smooth and stable movement of the suspension and steering.

MacPherson Strut

A type of automotive suspension system that combines a shock absorber and a coil spring into a single compact assembly.

Steering Knuckle

A pivotal component in a vehicle's steering system to which the wheel assembly is mounted, allowing the wheel to pivot and turn.

Coil Spring

A length of steel wound into a coil shape. The shape of the coil creates a spring action. Coil springs are found in front and rear suspension systems.