Assume That Machine Hours Is the Cost Driver for Overhead

question 11

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.

---

Definitions:

Formal Account

An organized financial record of transactions over a period for an individual, company, or entity, maintained in a structured format.

Standard Account Form

A uniform format for presenting accounting information, typically including assets, liabilities, and equity sections.

Ledger

A book or digital record used to track all financial transactions and balances for a company's accounts.

Accounting Tool

Software or systems utilized by accountants or businesses to record, analyze, and report financial information.