Simplify the Expression

question 4

Multiple Choice

Simplify the expression.

• A)4
• B)5
• C)20
• D)16
• E)none of these

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Definitions:

Overhead Rate Variance

The difference between the actual overhead costs incurred and the standard overhead costs assigned to production.

Materials Price Variance

The difference between the actual cost of direct materials used in production and the expected (budgeted) cost of those materials.

Materials Standards

Predetermined benchmarks for the cost and quantity of materials used in the production process.

Materials Price Variance

The difference between the actual cost of materials and the expected (or standard) cost, indicating how efficiently materials are being purchased.