The Variance from Standard for Factory Overhead Resulting from Incurring

question 82

True/False

The variance from standard for factory overhead resulting from incurring a total amount of factory overhead cost that is greater or less than the amount budgeted for the level of operations achieved is termed controllable variance.

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Definitions:

Manufacturing Cost

The total cost incurred by a company to produce a specific quantity of a product, including direct materials, direct labor, and manufacturing overhead.

Work in Process

Partially finished goods that are still in the production process at the end of an accounting period.

Raw Materials

Basic materials and substances used as inputs in the manufacturing process to produce goods or finished products.

Purchase

The act of buying goods or services, an essential activity in the operations of a business.