Asked by
Katie Dickens
on Oct 15, 2024
Verified
The 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.
Overhead Cost Variance
The difference between the estimated overhead costs and the actual overhead costs incurred during a period.
Overhead Costs
Expenses not directly tied to the production of goods or services, such as rent, utilities, and office supplies.
- Understand and calculate the overhead cost variance.
Verified Answer
LW
Learning Objectives
- Understand and calculate the overhead cost variance.