Which of the following variances is caused by a difference between the denominator activity in the predetermined overhead rate and the standard hours allowed for the actual production of the period? a) Variable overhead spending variance b) Variable overhead efficiency variance c) Fixed overhead budget variance d) Fixed overhead volume variance 1) Brantic Company has several service departments that provide services to each other as well as to operating departments within the company. Which method would be least accurate in allocating the company's service department costs? a) The sequential method b) The direct method c) The step-down method d) The reciprocal method
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
4) Which of the following variances is caused by a difference between the denominator activity in the predetermined
a) Variable overhead spending variance
b) Variable overhead efficiency variance
c) Fixed overhead budget variance
d) Fixed overhead volume variance
1) Brantic Company has several service departments that provide services to each other as well as to operating departments within the company. Which method would be least accurate in allocating the company's service department costs?
a) The sequential method
b) The direct method
c) The step-down method
d) The reciprocal method
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