Question

the difference between budgeted overhead and the standard overhead applied at the actual units produced is called: multiple choice production variance. volume variance. overhead cost variance. quantity variance. controllable variance.

Explanation:

• Production variance: Generally related to differences in production levels but not specifically the difference described in the question.
• Volume variance: Calculated as Budgeted overhead - Standard overhead applied at actual units produced. This matches the description in the question.
• Overhead cost variance: Usually a broader term that may include other components like spending variance etc., not the specific difference here.
• Quantity variance: More related to quantity of inputs (like materials quantity) rather than overheads.
• Controllable variance: Focuses on variances that can be controlled by management actions, not the described difference.

Answer:

Volume variance.