The Variable Overhead Rate Variance May Be Caused by Variances

question 240

Multiple Choice

The variable overhead rate variance may be caused by variances in the following production inputs except

• A)indirect materials.
• B)indirect labor.
• C)fixed manufacturing overhead.
• D)None of the above impacts the variable overhead rate variance.

---

Definitions:

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue, a key indicator of financial health.

Liabilities

Financial obligations or debts a company owes to others, which must be paid back in the future.

Adjust Prepaid Insurance Expense

The process of allocating prepaid insurance cost over the period to which it applies, reflecting its usage over time.

Financial Statements

Documents that provide an overview of a company's financial condition, including balance sheet, income statement, and cash flow statement.