JJ's Hair Salon Pays Overhead Each Month, Including Bills for Rent

question 45

Multiple Choice

JJ's Hair Salon pays overhead each month, including bills for rent, heat, interest, and salaries. These payments are examples of ________ costs.

• A) total
• B) average
• C) activity-based
• D) variable
• E) fixed

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Definitions:

Variable Overhead Spending Variance

The difference between the actual and budgeted or standard costs of variable overheads incurred during a period.