The fixed factory overhead application rate is a function of apredetermined activity level. If standard hours allowed foractual output equal this predetermined activity level for aperiod, the volume variance will beA) zero.B) favorable.C) unfavorable.D) either favorable or unfavorable, depending on the budgetedoverhead.

The correct answer is:A) zero. Explanation:The volume variance measures the difference between the…

Answered: The fixed factory overhead application…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 19MC: The variable overhead rate variance is caused by the sum between which of the following? A. actual...

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The fixed factory overhead variance is caused by the difference between which of the following? A. actual and standard allocation base B. actual and budgeted Units C. actual fixed overhead and applied fixed overhead D. actual and standard overhead rates
The variable overhead efficiency variance is caused by the difference between which of the following? A. actual and budgeted units B. actual and standard allocation base C. actual and standard overhead rates D. actual units and actual overhead rates
A flexible budget______. A. predicts estimated revenues and costs at varying levels of production B. gives actual figures for selling price C. gives actual figures for variable and fixed overhead D. is not used in overhead variance calculations
When is the direct labor time variance favorable? A. when the actual quantity used is greater than the standard quantity B. when the actual quantity used is less than the standard quantity C. when the actual price paid is greater than the standard price D. when the actual price is less than the standard price
The fixed factory overhead application rate is a function of a predetermined activity level. If standard hours allowed for actual output equal this predetermined activity level for a given period, the volume variance will be:
Variable manufacturing overhead is applied to products on the basis of standard direct labor-hours. If the labor efficiency variance is favorable, the variable overhead efficiency variance will be: Multiple Choice favorable. unfavorable. zero.
The variable overhead spending variance is most effective in measuring: O how well overhead spending matches the targets set in the original budget at the beginning of the year. O the efficiency with which the activity base was utilized in production. O the excessive use of overhead resources. O the utilization of plant facilities.
Which of the following is a correct equation to calculate the fixed overhead production-volume variance? a. budgeted fixed overhead costs − fixed overhead costs allocated for actual output b. static budget amount − flexible budget amount c. actual costs incurred − fixed overhead costs allocated for actual output d. flexible budget amount − actual costs incurred
Is this correct?
An unfavorable labor efficiency variance is created when: Please explain why I seen answers for both A and A actual labor hours worked exceed standard hours allowed. B. actual hours worked are less than standard hours allowed. C. actual wages paid are less than amounts that should have been paid. D. actual units produced exceed budgeted production levels. E actual units produced exceed standard hours allowed.
The variable overhead efficiency variance is caused by the difference between which of the following? A. acutal and budgeted units B. actual and standard allocation base C. actual and standard overhead rates D. actual units and actual overhead rates
Under the three variance method for analyzing factory overhead, the difference between the actual factory overhead and the budget allowance based on actual hours is the * efficiency variance spending variance volume variance idle capacity variance

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