Unformatted text preview: variance includes both price and quantity variances. You should also be able to understand and discuss why the variable overhead efficiency variance measures the efficient or inefficient use of the activity driver of the overhead. 6. You should be able to compute the fixed overhead spending and production volume variances, label the variance as favorable or unfavorable, and understand some possible causes for the variances. 7. You should be able to explain and show that the sum of the four overhead variances equal the under or overapplied overhead cost for the period....
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 Spring '08
 JONES
 Accounting, Cost Accounting, Variance, Following, Summation, variable overhead spending

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