Under Which of the Following Circumstances Would the Base Used

question 120

Multiple Choice

Under which of the following circumstances would the base used to calculate the variable overhead rate be the same as that used for the fixed overhead rate?

• A) When actual labor hours are the same as budgeted labor hours
• B) When standard indirect labor hours agree with standard direct labor hours
• C) In most circumstances; the base used for each calculation is normally the same.
• D) When the number of labor hours expected to be incurred for the period is the same as normal capacity direct labor hours

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Definitions:

Unavoidable Tactic

A strategy so essential to a situation that avoiding it could significantly impact the outcome.

Full Control

A situation or condition where an individual or organization has complete authority and power over a particular area or process.

Avoid Greater Harm

A principle or strategy aimed at preventing actions or decisions that could lead to more serious or extensive damage.

End-Results Ethics

An ethical perspective that judges the morality of actions based on the outcomes or consequences they produce.