The Variable Overhead Efficiency Variance Is Computed ________ and Interpreted

question 31

Multiple Choice

The variable overhead efficiency variance is computed ________ and interpreted ________ the direct-cost efficiency variance.

• A) the same as; the same as
• B) the same as; differently than
• C) differently than; the same as
• D) differently than; differently than

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Definitions:

Markup

The extra charge added onto the purchase price of products to account for operational costs and generate profit.

Predetermined Overhead Rate

A rate calculated before the period begins, used to allocate manufacturing overhead to products based on a specific activity base.

Fixed Manufacturing Overhead

The static costs associated with manufacturing a product, which do not change with the volume of production, such as rent and salaries.

Job A496

This term could refer to a specific job or project identifier within a company, often used for tracking purposes.