Which One of the Following Describes the Total Overhead Variance

question 239

Multiple Choice

Which one of the following describes the total overhead variance?

• A) The difference between what was actually incurred and the flexible budget amount
• B) The difference between what was actually incurred and overhead applied
• C) The difference between the overhead applied and the flexible budget amount
• D) The difference between what was actually incurred and the total production budget

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Definitions:

Control Limits

Statistical boundaries in process control that indicate the acceptable range of process variation.

Centerline

The midpoint value in a control chart that represents the average performance of the process being studied.

Lower Control Limit

The threshold in statistical quality control, below which a process is considered out of control and indicates variation not due to common causes.

P Chart

A statistical chart, known as a control chart, used for monitoring the proportion of defectives in a process over time.