The Difference Between the Actual Allocation Base (Actual Quantity)and the Amount

question 146

Multiple Choice

The difference between the actual allocation base (actual quantity) and the amount of the allocation base that should have been used (standard quantity) times the standard cost is called the ________.

• A) variable overhead cost variance
• B) variable overhead efficiency variance
• C) fixed overhead cost variance
• D) fixed overhead volume variance

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Definitions:

Special Order

A special order refers to a one-time or unusual request from a customer to purchase goods or services that differ from a company's regular offerings, often requiring unique pricing and production scheduling.

Sales Price

The amount for which a product or service is sold to the customer.

Current Profits

The company's earnings from its operational activities in the most recent accounting period, not including long-term investments or expenses.

Production

The process of creating, manufacturing, or enhancing goods and services.