_____ is the most important contributor to the variances between actual and applied overhead.

Question

Quizplus · Accepted Answer

The difference between actual and budgeted volume of cost driver activity is the most important contributor to the variances between actual and applied overhead. Cost driver activity is the primary factor that drives overhead expenses, and any differences between the budgeted and actual activity levels can have a major impact on overhead costs. Poor forecasting, inefficient use of overhead items, and calendar variations can also contribute to variances, but they are not as significant as the difference between actual and budgeted cost driver activity.

_____ Is the Most Important Contributor to the Variances Between