If Actual Overhead Is Greater Than Applied Overhead, the Variance

question 113

True/False

If actual overhead is greater than applied overhead, the variance is called underapplied overhead.

Compute direct materials price and quantity variances.

Understand the principle of standard costing and variance analysis.

Prepare journal entries for variances and standard costing adjustments.

Calculate total direct labor cost variances and identify variances as favorable or unfavorable.

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Definitions:

Acronym

A word formed from the initial letters of other words, used as a shorthand or abbreviation (e.g., NASA for National Aeronautics and Space Administration).

OCEAN

An acronym for the Big Five personality traits model: Openness, Conscientiousness, Extraversion, Agreeableness, and Neuroticism.

Pessimist

A person who tends to see the worst aspect of things or believe that the worst will happen.

Optimist

An individual who generally believes in positive outcomes and possesses a positive outlook on life.