When Variable Overhead Spending Variance Is Unfavorable, It Can Be

question 101

Multiple Choice

When variable overhead spending variance is unfavorable, it can be safely assumed that ________.

• A) actual rate per unit of cost-allocation base is higher than budgeted rate
• B) actual quantity of cost-allocation base used is higher than budgeted quantity
• C) actual rate per unit of cost-allocation base is lower than budgeted rate
• D) actual quantity of cost-allocation base used is lower than budgeted quantity

---

Definitions:

Drive

An internal motivational state that compels individuals towards certain actions or goals.

Incentive

A reward or inducement for action, often used to motivate behavior.

Sociobiological

Pertaining to the study of the biological basis of social behavior, often considering how evolutionary processes influence societal structures and behaviors.

Artificially Sweetened

Refers to food or drink products that contain synthetic sweeteners instead of natural sugars to reduce calorie content.