Assume That Machine Hours Is the Cost Driver for Overhead

question 11

Multiple Choice

Assume that machine hours is the cost driver for overhead. The difference between the actual variable overhead incurred and the applied variable overhead is the:

• A) volume variance.
• B) production variance.
• C) efficiency variance.
• D) sum of the spending and efficiency variances.
• E) spending variance.

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Definitions:

Short-Circuits

Short-circuits occur when an unintended electrical connection allows current to flow along a low-resistance path, potentially causing damage or a hazardous situation.

Ground-Faults

Faults that occur when there is an unintended electrical path between a power source and a grounded surface.

Overcurrent

A condition where the current exceeds the rated capacity of the conducting medium, potentially causing damage or overheating.

Ladder Diagrams

A graphical representation of a control circuit or system layout, resembling the rungs and rails of a ladder.