When Variable Overhead Spending Variance Is Unfavorable, It Can Be

question 101

Multiple Choice

When variable overhead spending variance is unfavorable, it can be safely assumed that ________.

• A) actual rate per unit of cost-allocation base is higher than budgeted rate
• B) actual quantity of cost-allocation base used is higher than budgeted quantity
• C) actual rate per unit of cost-allocation base is lower than budgeted rate
• D) actual quantity of cost-allocation base used is lower than budgeted quantity

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Definitions:

Courts of Chancery

Courts that have jurisdiction over matters of equity, including trusts, land use, and the administration of estates, historically separate from courts of law.

Common Law

A legal system based on court precedents and customs, rather than codified written laws.

Civil Law

The system of law concerned with private relations between members of a community rather than criminal, military, or religious affairs.

Parliamentary Supremacy

The principle that Parliament has the highest legal authority within a jurisdiction, making laws that are not subject to judicial review or limitation by other bodies.