What are the two variances for variable overhead?
A)spending and efficiency variances
B)budget and spending variances
C)volume and budget variances
D)efficiency and volume variances

Question

Quizplus · Accepted Answer

The two variances for variable overhead are spending variance (which measures the difference between actual variable overhead cost and the budgeted variable overhead cost based on actual hours worked) and efficiency variance (which measures the difference between the standard variable overhead rate and the actual variable overhead rate based on actual hours worked). Therefore, option A (spending and efficiency variances) is the correct answer.

What Are the Two Variances for Variable Overhead