Fixed Overhead Volume Variances Arise Because

question 141

Multiple Choice

Fixed overhead volume variances arise because:

• A)Budgeted overhead and actual overhead are usually identical
• B)An estimate of production volume is used for the denominator in calculating the fixed overhead allocation rate
• C)The actual amount of direct materials is not identical to the budgeted level
• D)The actual amount of fixed overhead costs in not identical to the budgeted level

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Definitions:

Bid Rate

The price at which a buyer is willing to purchase securities or other assets.

Offer Rate

The interest rate at which banks lend to their most credit-worthy customers, often referred to in the context of loans and savings.

Transaction Date

When control of the future economic benefits embodied in an asset are obtained from or transferred to another entity.

Exchange Rate

The price at which one currency can be exchanged for another currency.