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:

Activity-Based Costing

A method of costing that identifies specific activities within an organization and assigns costs to those activities based on their use of resources.

Activity-Based Costing

A costing method that assigns costs to products and services based on the resources they consume.

Labor-Related

Pertaining to aspects of work or employment, often focusing on workers, their conditions, wages, or productivity.

Direct Labor-Hours (DLH)

The total amount of labor time expended directly on manufacturing or producing goods, often used to allocate costs to products.