The overhead spending variance:
A)Occurs automatically whenever actual production levels differ from the "normal" production level used to compute the standard overhead cost per unit.
B)Is the difference between amounts spent for actual manufacturing overhead costs and the amount applied to production.
C)Is computed as the difference between variable overhead per the flexible budget and actual variable overhead costs incurred.
D)Is the portion of the total overhead variance that is considered "controllable" by the production manager.

Question

Quizplus · Accepted Answer

The Answer of The overhead spending variance:
A)Occurs automatically whenever actual production levels differ from the "normal" production level used to compute the standard overhead cost per unit.
B)Is the difference between amounts spent for actual manufacturing overhead costs and the amount applied to production.
C)Is computed as the difference between variable overhead per the flexible budget and actual variable overhead costs incurred.
D)Is the portion of the total overhead variance that is considered "controllable" by the production manager.

The Overhead Spending Variance