stp inc. has a variable overhead rate variance of $4,000 u, a variable overhead efficiency variance of $1,500 f, a fixed overhead budget variance of $2,000 f and a fixed overhead volume variance of $10,000 u. from the information, it can be determined that overhead was

Overhead, also known as overhead expense, is a continuing cost of doing business. Overheads are expenses that, unlike operational costs such as raw materials and labor, cannot be easily traced to or recognised with any specific revenue unit. As a result, overheads are not directly related to the products or services of been offered and do not generate profits. Overheads, on the other hand, are still critical to business operations because they enable the company to carry out profit-generating activities. For example, overhead expenses such as factory rent enable workers to produce products that can then be managed to sell for a profit. Such costs are incurred for outcome in general, rather than for a specific work order.

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