Which of the Following Is the Correct Mathematical Expression to Calculate

question 37

Multiple Choice

Which of the following is the correct mathematical expression to calculate the fixed overhead production-volume variance?

• A) static-budget amount - flexible-budget amount
• B) flexible-budget amount - actual costs incurred
• C) actual costs incurred - fixed overhead allocated for actual output
• D) budgeted fixed overhead - fixed overhead allocated for actual output

---

Definitions:

Scarce Resources

Resources that are limited in availability and cannot meet all demands of production or consumption at the same time.

Shadow Price

In economic theory, the value of an additional unit of a constrained resource, or the opportunity cost of not having that additional resource available.

Assembly Time

The total time required to put together various components of a product into its final form.

Overtime

Additional time worked by an employee beyond the normal or legally defined working hours, often eligible for higher pay rates.