If a Company Uses a Two-Variance Analysis for Overhead Variances

question 55

Multiple Choice

If a company uses a two-variance analysis for overhead variances and uses a predetermined rate for absorbing manufacturing overhead,the production-volume variance is the:

• A)Underapplied or overapplied variable cost element of overhead.
• B)Underapplied or overapplied fixed cost element of overhead.
• C)Difference in budgeted costs and actual costs of fixed overhead items.
• D)Difference in budgeted costs and actual costs of variable overhead items.

---

Definitions:

Stimulus

Any event or object in the environment that evokes a response from an organism.

Behavior

The actions or reactions of an organism or system, usually in response to external stimuli, observable and measurable by others.

Frequency

In the context of waves, it refers to the number of cycles of a wave that pass a certain point in a given period of time, typically measured in Hertz (Hz).

Operant Conditioning

Operant Conditioning is a learning process in which the strength of a behavior is modified by reinforcement or punishment.