The Difference Between Variable Overhead Cost Incurred and the Total

question 130

Multiple Choice

The difference between variable overhead cost incurred and the total standard variable overhead cost allowed for the output of the period is called the:

• A) Total variable overhead variance.
• B) Variable factory overhead spending variance.
• C) Variable factory overhead rate variance.
• D) Variable factory overhead efficiency variance.
• E) Variable factory overhead usage variance.

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Definitions:

Premium on Bonds Payable

The amount by which the bond's selling price exceeds its face value, reflecting higher interest or less risk as perceived by investors.

Face Value

The nominal or dollar value printed on a bond, note, or other financial instrument, representing the amount due at maturity.

Journal Entry

A record in the books of accounts that represents a business transaction, including information about debit and credit entries.

Bonds Payable

Long-term liabilities that represent money a company owes to bondholders, to be repaid at a specified maturity date.