The most effective means of presenting standard factory overhead cost variance data is through a selling overhead cost budget.

Question

Quizplus · Accepted Answer

Standard factory overhead cost variance data should be presented in a factory overhead cost budget, not a selling overhead cost budget. The factory overhead cost budget shows the expected overhead costs for a particular period based on the standard cost system, and it also includes the actual overhead costs incurred and the variances. On the other hand, a selling overhead cost budget shows the expected costs of selling and marketing products, which is not related to the factory overhead costs.

The Most Effective Means of Presenting Standard Factory Overhead Cost