The Two Variances for Variable Overhead Are

question 202

Multiple Choice

The two variances for variable overhead are

• A) spending and efficiency variances.
• B) spending and budget variances.
• C) budget and volume variances.
• D) spending and volume variances.
• E) volume and efficiency variances.

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Definitions:

Weighted-Average Method

A technique that figures out the cost of sold goods and the finishing inventory value, by averaging the cost of all items up for sale.

Labour and Overhead

Combined costs of workforce (both direct and indirect labor) and overhead expenses incurred during production.

Blending Department

A division within a manufacturing operation where raw materials are combined to produce a homogeneous product.

Weighted-Average Method

An inventory costing method that calculates the cost of goods sold and ending inventory based on the average cost of all units available for sale.