The overhead variance is least likely to be
A) zero (actual overhead equals applied overhead).
B) underapplied.
C) overapplied.
D) immaterial.
E) underapplied and material.

Question

Quizplus · Accepted Answer

Overhead variance measures the difference between actual overhead costs and the applied overhead costs. If the actual overhead costs equal the applied overhead costs, there would be no variance, which means the overhead variance would be zero. Therefore, choice A is the correct answer.

The Overhead Variance Is Least Likely to Be