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Author Question: Because fixed overhead does not vary with changes in the level of activity, some managers do not see ... (Read 94 times)

redpassion

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Question 1

Variable overhead cost consists of indirect production costs that are expected to vary with production activity. How is the variable overhead spending variance calculated and list potential causes of the variance?

Question 2

Because fixed overhead does not vary with changes in the level of activity, some managers do not see a need to investigate variances relating to fixed costs. However, that is not the case.

a.How is the fixed overhead spending variance calculated?
b.Discuss items that generally do not affect the fixed overhead variance and those that
might affect the fixed overhead variances.


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Marked as best answer by redpassion on Feb 5, 2023

sakura282000

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redpassion

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Reply 2 on: Feb 5, 2023
Gracias!


cpetit11

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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