The Total Overhead Variance Is the Difference Between Standard Variable

question 38

True/False

The total overhead variance is the difference between standard variable overhead costs and standard fixed overhead costs.

---

Definitions:

Tax Rate

A tax rate is the percentage at which an individual or corporation is taxed on their income or profits.

Degree of Operating Leverage

A financial metric that measures the sensitivity of a company's operating income to its sales.

Variable Cost

Costs that vary directly with the level of production or business activity, such as materials and labor.