The Variable Overhead Spending Variance Is Calculated as

question 127

Multiple Choice

The variable overhead spending variance is calculated as

• A)Actual cost − (actual quantity × standard price).
• B)Actual cost − (standard quantity × standard price).
• C)Standard cost − (actual quantity × actual price).
• D)Actual results minus the variable overhead flexible budget amount.

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Definitions:

Variability

The extent to which data points in a statistical distribution or dataset differ from each other and from the central tendency.

Directionality

The characteristic of a relationship in statistics that indicates if one variable increases as the other variable increases or decreases.

American Psychological Association

A professional organization representing psychologists in the United States, also known for its publication standards for research.

Bar Charts

A graphical representation of data using bars of different heights or lengths to compare various categories.