Which of the Following Statements Is Incorrect Regarding Variable Overhead

question 41

Multiple Choice

Which of the following statements is incorrect regarding variable overhead variances?

• A) Variable overhead variances are based on the same general formulas used to compute the materials and labor price variances.
• B) Variable overhead costs represent many inputs such as supplies, utilities and indirect labor.
• C) All companies must calculate price and usage variances for variable overhead costs.
• D) None of these answers is correct.

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Definitions:

Origination Rate

Refers to the speed at which new species or phenomena emerge within a specific period.

Beetles

An order of insects known as Coleoptera, characterized by a pair of hard forewings covering their flying wings.

Atmospheric Carbon Dioxide

The concentration of CO2 in the Earth's atmosphere, a significant greenhouse gas contributing to global warming.

Adaptive Radiation

An evolutionary lineage that has undergone exceptionally rapid diversification into a variety of lifestyles or ecological niches.