On the Line in Front of Each Variance, Enter the Letters

question 209

Short Answer

On the line in front of each variance, enter the letters of the items needed to compute that variance. You will enter more than one item on each line.
A. Standard overhead allocated to production
B. Flexible budget overhead for actual number of outputs
C. Actual variable overhead cost
D. Fixed overhead costs
______ Overhead flexible budget variance
______ Production volume variance

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Definitions:

Work in Process

Work in process refers to the goods in production that are not yet completed, representing a stage between raw materials and finished goods.

Materials Costs

The overall cost associated with the materials utilized in manufacturing goods or providing services.

Conversion Cost

The combined costs of direct labor and manufacturing overheads incurred to convert raw materials into finished goods.

Physical Units

A method of measuring production or inventory in terms of actual physical items or quantities.