Question

The difference between total factory overhead cost incurred during a period and the total standard factory overhead cost assigned to production of the period is the:______________.

A) Flexible-budget variance.
B) Production-volume variance.
C) Total factory overhead variance.
D) Overhead efficiency variance.
E) Total overhead spending variance.

Answer 1

Answer: C. Total factory overhead variance

Step-by-step explanation:

The difference between total factory overhead cost incurred during a period and the total standard factory overhead cost assigned to production of the period is the total factory overhead variance.

Flexible budget variance is the difference that occurs between the results that are gotten by the flexible budget model and the actual results gotten.

Production volume variance is the difference that occurs between the budgeted production volume for a particular company and the actual volume of goods produced.

The correct option is C.