The Difference Between the Amount of Money Actually Incurred for Variable

question 17

Multiple Choice

The difference between the amount of money actually incurred for variable manufacturing overhead and the amount that should have been incurred for the actual activity level achieved, measured in terms of direct labor hours, is:

• A) The variable manufacturing overhead efficiency variance
• B) The variable manufacturing overhead spending variance
• C) The total variable manufacturing overhead variance
• D) None of these are correct

---

Definitions:

Bonds Payable

Long-term liabilities representing amounts owed by a corporation or government to bondholders, to be repaid at a specified future date.

Receipts

Records of transactions indicating payment made or received.

Direct Method

a cash flow statement preparation approach that shows the specific cash inflows and outflows from operating activities.

Cash Received

Cash received encompasses any inflow of cash to a business or individual, coming from various sources such as sales, loan proceeds, or investments.