Which of the following is NOT a contributory cause of overhead variances?
A) Poor forecasting
B) Inefficient use of overhead items
C) Calendar variations, number of workdays in a month
D) Operating at the level of volume used as a denominator in calculating the budgeted overhead rate

Question

Quizplus · Accepted Answer

Operating at the level of volume used as a denominator in calculating the budgeted overhead rate is not a cause of overhead variances; it is the expected level of activity.

Which of the Following Is NOT a Contributory Cause of Overhead