Which of the following is the best definition of probable operating costs? a) amount of money required to start a business. b) amount of money required to market a business. c) amount of money required to purchase business equipment. d)amount of money required to keep a business running

The best definition of probable operating costs is the amount of money required to keep a business running. In order to keep a business running there are certain costs involved that are always probable.

d)Amount of money required to keep a business running is the correct answer.

Explanation:

The best definition of probable operating costs is Amount of money required to keep a business running.Operating costs is the cost of means that are used by the organization to sustain its continuation.Operating costs are important and inescapable for most companies.Operating costs are the expenses that include things such as rent, equipment, salary, utilities, office, allowances, taxes and marketing these operating expenses are actually the expenses to keep the company running.

Variable manufacturing overhead rate (cost) variance= $4,756.95 unfavorable

Explanation:

Giving the following information:

Budgeted variable overhead costs $13,500

Budgeted direct labor hours 640 hours

Actual:

Actual variable overhead costs $15,200

Actual direct labor hours 495 hours

To calculate the variable overhead rate (cost) variance, we need to use the following formula:

Variable manufacturing overhead rate variance= (standard rate - actual rate)* actual quantity

Standard rate= 13,500/640= $21.1

Actual rate= 15,200/495= $30.71

Variable manufacturing overhead rate variance= (21.1 - 30.71)*495

Variable manufacturing overhead rate variance= $4,756.95 unfavorable