What Might a Favourable Fixed Overhead Spending Variance Indicate

question 152

Multiple Choice

What might a favourable fixed overhead spending variance indicate?

• A)More capacity was used than planned.
• B)The denominator level was less than planned.
• C)A plant expansion did not proceed as originally planned.
• D)The fixed overhead cost-allocation base was not used efficiently.

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Definitions:

Hauling Large Tonnage

The process of transporting heavy quantities of goods, often measured in tons, over a distance.

Damage Rates

The percentage of goods that are damaged or faulty out of a total number of items received, highlighting issues in handling or quality.

Logistics Services

Activities related to the planning, implementation, and control of the transportation and storage of goods from origin to consumption.

Transportation Rates

The fees charged by carriers for the conveyance of goods or passengers from one location to another, which can vary based on distance, weight, or type of service.