Which of the Following Statements Is Incorrect Regarding Variable Overhead

question 41

Multiple Choice

Which of the following statements is incorrect regarding variable overhead variances?

• A) Variable overhead variances are based on the same general formulas used to compute the materials and labor price variances.
• B) Variable overhead costs represent many inputs such as supplies, utilities and indirect labor.
• C) All companies must calculate price and usage variances for variable overhead costs.
• D) None of these answers is correct.

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Definitions:

Public Transportation

Systems of transport for passengers that are available for use by the general public, typically managed on a schedule and operated on established routes.

Raw Materials

Basic materials and substances used in the initial stages of production or manufacturing processes.

Shortages Worldwide

A global situation where the demand for various goods or services exceeds the available supply, leading to scarcity.