Question

An overhead variance report includes: (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) a) Variable and fixed flexible budget costs b) Variable and fixed actual results c) Variable and fixed sales results d) Variable and fixed variances

Answer 1

Answer:

a) Variable and fixed flexible budget costs

b) Variable and fixed actual results

d) Variable and fixed variances

Explanation:

Variance helps a company know when it exceeds the budget that it had planned for a particular activity. Normally companies make estimates on the cost of activities that they will embark on in a certain period and when they incur actual costs, they compare them with the budgeted costs to see if they had a Favorable (actual costs are less than budgeted) Variance or an Unfavorable ( actual costs are more than budgeted) variance.

In the report therefore, there will be the Variance that was calculated.

There will also be the Budgeted Costs as well as the Actual Costs to show how the Variance was computed.