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Margaret [11]
3 years ago
12

Overhead cost variance is: Multiple Choice The difference between the actual overhead incurred during a period and the standard

overhead applied. The difference between actual and budgeted cost caused by the difference between the actual price per unit and the budgeted price per unit. The costs that should be incurred under normal conditions to produce a specific product (or component) or to perform a specific service. 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. The difference between the overhead costs actually incurred and the overhead budgeted at the actual operating level.
Business
1 answer:
mezya [45]3 years ago
3 0

Answer:

The difference between the actual overhead incurred during a period and the standard overhead applied.

Explanation:

As we know that

The variance is the difference between the actual volume or amount and expected or standard volume or amount

So the overhead variance is the difference between the actual overhead incurred and the standard overhead applied

Plus if the standard is more than the actual than it would be favorable otherwise unfavorable

Therefore, the first option is correct

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If after utilizing the resources lead the market value of resulted outcomes is greater than available resources then entrepreneur has a profit.

In the same way, the wheat farmer is starting to invest in the land which assumed to be not good for growing wheat.

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