In a Three-Variance Method of Factory Overhead Analysis,the Variance That

question 48

Multiple Choice

In a three-variance method of factory overhead analysis,the variance that measures the difference between the factory overhead applied and the actual hours worked multiplied by the standard rate is the:

• A)Production-volume variance.
• B)Quantity variance.
• C)Spending variance.
• D)Efficiency variance.

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Definitions:

Inelastic

A characteristic of demand when consumers' purchase quantities are not significantly affected by changes in the price of a good or service.

Good Substitutes

Products or services that can be used in place of one another, satisfying the same needs or wants of the consumer.

Elastic

Describes demand or supply that is highly sensitive to changes in price; a small change in price leads to a large change in the quantity demanded or supplied.

Perfectly Inelastic

Describing a situation where demand or supply does not change in response to changes in price.