MC 31 What is the difference between variable overhead and fixed overhead?
A. Variable overhead costs vary with changes in the level of production, while fixed overhead costs remain constant regardless of the level of production.
B. Variable overhead costs are direct costs of production, while fixed overhead costs are indirect costs of production.
C. Variable overhead costs are associated with direct materials, while fixed overhead costs are associated with direct labor.
D. Variable overhead costs are incurred on a per-unit basis, while fixed overhead costs are incurred on a total basis.
Answer:A
MC 31 What is the difference between variable overhead and fixed overhead?
A. Variable overhead costs vary with changes in the level of production, while fixed overhead costs remain constant regardless of the level of production. B. Variable overhead costs are direct costs of production, while fixed overhead costs are indirect costs of production. C. Variable overhead costs are associated with direct materials, while fixed overhead costs are associated with direct labor. D. Variable overhead costs are incurred on a per-unit basis, while fixed overhead costs are incurred on a total basis.
Explanation: Variable overhead costs are costs that vary with changes in the level of production, such as indirect materials and supplies, while fixed overhead costs are costs that remain constant regardless of the level of production, such as rent and property taxes.