What Rarely Occurs Regarding the Overhead Variance

question 192

Multiple Choice

What rarely occurs regarding the overhead variance?

• A) overhead is overapplied
• B) overhead is underapplied
• C) overhead is a very small amount
• D) actual overhead equals applied overhead

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Definitions:

Shortages

A situation in which the demand for a product or service exceeds the supply available at a particular price.

Quantity Supplied

Refers to the amount of a good or service that producers are willing and able to sell at a given price during a specific period.

Quantity Demanded

The amount of a good that buyers are willing and able to purchase at a specific price.

Quantity Demanded

The overall volume of a commodity or service that consumers are ready and able to buy at a certain price within a market.