Overhead Cost Variance Is

question 22

Multiple Choice

Overhead cost variance is:

• A) The difference between the overhead costs actually incurred and the overhead budgeted at the actual operating level.
• B) The difference between the actual overhead incurred during a period and the standard overhead applied.
• C) The difference between actual and budgeted cost caused by the difference between the actual price per unit and the budgeted price per unit.
• D) The costs that should be incurred under normal conditions to produce a specific product (or component) or to perform a specific service.
• E) The difference between the total overhead cost that would have been expected if the actual operating volume had been accurately predicted and the amount of overhead cost that was allocated to products using the standard overhead rate.

---

Definitions:

HUD

The United States Department of Housing and Urban Development, a federal agency responsible for national policies and programs addressing America's housing needs.

One-Year Warranty

A guarantee given by the seller or manufacturer to the buyer that a product will be free from defects for a period of one year from the date of purchase.

Psychodynamically Oriented

Pertaining to therapeutic or theoretical approaches that focus on unconscious processes and the influence of early experiences on current behavior.

Environmental Forces

External factors such as economic, technological, legal, and social factors that affect an individual or organization's ability to operate or achieve its goals.