Overhead Cost Variance Is

question 22

Multiple Choice

Overhead cost variance is:

• A) The difference between the overhead costs actually incurred and the overhead budgeted at the actual operating level.
• B) The difference between the actual overhead incurred during a period and the standard overhead applied.
• C) The difference between actual and budgeted cost caused by the difference between the actual price per unit and the budgeted price per unit.
• D) The costs that should be incurred under normal conditions to produce a specific product (or component) or to perform a specific service.
• E) The difference between the total overhead cost that would have been expected if the actual operating volume had been accurately predicted and the amount of overhead cost that was allocated to products using the standard overhead rate.

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Definitions:

Hardware

The physical components and devices that make up a computer system or other electronic systems, including processors, memory modules, disks, and peripheral devices.

Strategic Advantage

A favorable position a company holds against its competitors, often through differentiation, cost leadership, or niche focus, contributing to business success.

Stores Information

Systems or services that are designed to save and manage data, such as databases or cloud storage solutions.

Brief Periods

refer to short spans of time, usually of a specific and limited duration.