What Type of Variance Results When the Actual Fixed Overhead

question 66

Multiple Choice

What type of variance results when the actual fixed overhead costs incurred are greater than the budgeted fixed overhead costs?

• A)Favorable fixed overhead budget variance
• B)Unfavorable fixed overhead budget variance
• C)Favorable fixed overhead volume variance
• D)Unfavorable fixed overhead volume variance

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Definitions:

Factor Suitability

A principle in economics that factors of production such as land, labor, and capital are more productive when appropriately matched with their specific uses or industries.

Law of Diminishing Returns

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Worker Safety

Regulations and practices designed to protect employees from hazards and risks associated with their work environment.

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Tiny solid particles often found in the air, resulting from soil dust, pollen, soot, and other materials.