The Difference Between Budgeted Fixed Factory Overhead for a Period

question 4

Multiple Choice

The difference between budgeted fixed factory overhead for a period and the amount of fixed factory overhead applied to production during the period is the:

• A) Fixed factory overhead efficiency variance.
• B) Fixed factory overhead production-volume variance.
• C) Fixed factory overhead spending variance.
• D) Fixed factory overhead sales-volume variance.
• E) Fixed factory overhead flexible budget variance.

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Definitions:

Equity Theory

Equity Theory suggests that individuals seek fairness in relationships, feeling satisfied when they perceive that their inputs and outcomes are proportional to those of their comparison others.

Continuance Commitment

Commitment that results when an employee remains with a company because of the high cost of losing organizational membership including monetary and social costs.

Normative Commitment

A commitment to the organization based on feelings of obligation.

Performance Review

A formal assessment where an employee's work performance is evaluated and discussed.