​Which Statement Is Incorrect with Respect to Filing for an S

question 24

Multiple Choice

​Which statement is incorrect with respect to filing for an S election?

• A)​Form 2553 must be filed.
• B)​All shareholders must consent.
• C)​The election may not be filed in the previous year.
• D)​An extension of time is available for filing Form 2553
• E)​None of the above is incorrect

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Definitions:

Variable Overhead Rate Variance

Variable overhead rate variance is the difference between the actual variable overhead costs incurred and the expected (standard) costs, influenced by fluctuations in production activity levels.

Materials Price Variance

The difference between the actual cost of materials and the standard (or expected) cost, indicating how much more or less was spent on materials than was planned.

Labor Rate Variance

The difference between the actual cost of labor and the budgeted cost of labor at the standard rate.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected variable overhead based on standard cost accounting.