Which of the Following Correctly Lists All the Information Needed

question 27

Multiple Choice

Which of the following correctly lists all the information needed to calculate a labor rate variance?

• A)Standard labor rate and actual hours worked.
• B)Actual hours worked and actual units produced.
• C)Standard labor rate,actual labor rate,and actual units produced.
• D)Actual labor rate and actual hours workeD.
• E)Actual labor rate,standard labor rate,and actual hours worked.

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Definitions:

Controllable Overhead Variance

Controllable overhead variance is the difference between the actual overhead costs incurred and the budgeted overhead costs that could be controlled.

Overhead Applied

The portion of overhead costs allocated to specific jobs or production activities based on a predetermined formula or rate.

Overhead Volume Variance

The difference between the budgeted and actual overhead costs due to changes in the level of production or activity.

Total Overhead Variance

The difference between the actual overhead costs incurred and the overhead costs that were budgeted or applied based on a standard cost system.