A budgeted factory overhead 16. Victor Company incurred actual overhead costs of $297,500 for the year. rate of 15% of direct labor cost was determined at the beginning of the year. Budgeted factorv overhead was $300,000 and budgeted direct labor cost was $200,000. Actual direct labor cost was $205,000 for the year. The factory overhead variance for the year was A) 52,500 underapplied B) $2,500 overapplied C)$10,000 underapplied D) S10,000 overapplied Answer: 17. The variable overhead spending variance combinesand A) price; quantity B) price; efficiency C) efficiency; sales activity D) rate; sales activity Answer: 18. The minimum desired rate of return on an investment is sometimes referred to as A) the discount rate B) the hurdle rate C) the required rate of return D) all of the above Answer 19. The excess of applied overhead costs over the actual overhead costs is called, A) overapplied overhead B) underapplied overhead C) underbudgeted overhead D) overestimated overhead Answer 20. is the system that applies costs to similar products that are mass-produced in continuous fashion through a series of production processes. A) Job-order costi B) JIT costing C) Activity-based costing D) Process costing Answer: t value method computes the present value of allusing a minimum desired rate of return. A) expected future cash inflows only B) expected future cash outflows only C) expect D) past cash inflows Answer ed future cash inflows and expected future cash outflows