The overall difference between the actual and applied manufacturing overhead is the:
A)over- or underapplied overhead.
B)overhead rate variance.
C)overhead efficiency variance.
D)overhead volume variance.

Question

Quizplus · Accepted Answer

The difference between actual and applied manufacturing overhead is known as over- or underapplied overhead. This means that either too much or too little overhead was applied to the production process, resulting in a variance. The other options (overhead rate variance, efficiency variance, and volume variance) all refer to specific types of variances within the overhead category, but do not encompass the overall difference between actual and applied overhead.

The Overall Difference Between the Actual and Applied Manufacturing Overhead