Assume That Machine Hours Is the Cost Driver for Overhead

question 46

Multiple Choice

Assume that machine hours is the cost driver for overhead.The difference between the actual variable overhead incurred and the applied variable overhead is the:

• A)volume variance.
• B)production variance.
• C)efficiency variance.
• D)sum of the spending and efficiency variances.
• E)spending variancE.

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Definitions:

Whistle-Blowing

Employee’s disclosure to company officials, government authorities, or the media of illegal, immoral, or unethical practices committed by an organization.

Faulty Materials

Substandard or defective supplies used in the production process.

Financial Security

The condition of having stable income or resources to support a standard of living now and in the foreseeable future.

Integrity

Refers to the quality of being honest and having strong moral principles.