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In the following, discuss whether Marina is treating relevantly similar cases in sufficiently similar fashions; identify instances in which the cases are not relevantly similar.
Marina calls it to the clerk's attention when she is overcharged but not when she is undercharged.
Budget Variance
The difference between the budgeted or planned amount of expense or revenue and the actual amount incurred or received.
Denominator Activity
The level of activity used to compute a predetermined overhead rate, representing the total amount of absorption base that is expected to be utilized.
Efficiency Variances
Refers to the differences between the actual and standard costs attributable to efficiency in using resources, often analyzed in labor and variable overhead.
Predetermined Overhead Rate
An estimated rate used to assign manufacturing overhead costs to individual units of production, based on a chosen activity base.
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