The Difference Between Actual and Budgeted Fixed Factory Overhead Is

question 163

True/False

The difference between actual and budgeted fixed factory overhead is referred to as a fixed overhead spending variance.

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Definitions:

Direct Labor Costs

The compensation provided to employees who are directly engaged in manufacturing goods or delivering services.

Total Overhead

The sum of all indirect costs incurred by a company, including administrative expenses, depreciation, and utilities.

Factory Wages Payable

An account that represents the amount of wages owed to factory workers for work performed that has not yet been paid.

Factory Payroll

The total compensation, including wages, salaries, and benefits, paid to employees working within a manufacturing facility.