A Fixed-Overhead Volume Variance Would Normally Arise When

question 26

Multiple Choice

A fixed-overhead volume variance would normally arise when:

• A)actual hours of activity coincide with actual units of production.
• B)budgeted fixed overhead is less than (or greater than)applied fixed overhead.
• C)there is a fixed-overhead budget variance.
• D)actual fixed overhead exceeds budgeted fixed overheaD.
• E)there is a variable-overhead efficiency variancE.
• Overapplied overhead can also be the result of a budget variancE.

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Definitions:

Taxable Income

The amount of an individual's or corporation's income that is subject to taxes, after deductions and exemptions.

Standard Deduction

A fixed amount that reduces the income on which you are taxed, which the IRS allows taxpayers to subtract from their gross income to reduce taxable income.

Joint Return

A tax return filed jointly by a married couple, combining their incomes, deductions, and credits.

Taxable Income

The amount of an individual's or entity's income used to determine how much tax is owed to the government.