What Is the Formula for Total Fixed Overhead Variance

question 62

Multiple Choice

What is the formula for total fixed overhead variance?

• A)total actual overhead − total applied overhead
• B)AFOH − standard overhead rate × SH
• C)AFOH − SFOR × SH
• D)AFOH − SFOR × AH

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Definitions:

Invested Assets

Assets that are allocated into various investment vehicles such as stocks, bonds, real estate, or other securities with the expectation of earning a return.

Operating Income

The profit realized from a business's operations, after deducting operating expenses like wages and cost of goods sold from gross profit.

Investment Turnover

A measure of a company's ability to generate sales from its investments; calculated by dividing sales by average invested assets.

Profit Margin

The amount by which revenue from sales exceeds costs in a business, expressed as a percentage of total sales.