Favorable variances are represented by debit balances in the overhead account.

Name: Favorable variances are represented by debit balances in the overhead account.
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Question

Quizplus · Accepted Answer

Favorable variances are represented by credit balances in the overhead account, as they indicate that actual costs were lower than budgeted costs. Debit balances represent unfavorable variances, indicating that actual costs were higher than budgeted costs.

Favorable Variances Are Represented by Debit Balances in the Overhead