Which of the following should be considered when analyzing manufacturing overhead variances?
A) whether costs incurred are product costs or period costs
B) whether direct materials costs are higher than standard costs
C) whether certain manufacturing overhead costs are controllable
D) whether direct labor costs can be reduced

Question

Quizplus · Accepted Answer

Manufacturing overhead variances refer to the differences between actual overhead costs incurred and what should have been incurred according to the standards. When analyzing these variances, it is important to consider which manufacturing overhead costs are controllable and can be changed in the future. This allows managers to identify areas where improvements can be made to reduce costs and improve efficiency. The other options listed (A, B, and D) are important considerations in other areas of cost analysis, but are not specific to analyzing manufacturing overhead variances.

Which of the Following Should Be Considered When Analyzing Manufacturing