The part of the variable overhead budget variance due to the difference between actual variable overhead cost and the standard cost allowed for the actual inputs used is called the:
A)variable overhead spending variance.
B)variable overhead budget variance.
C)variable overhead efficiency variance.
D)variable overhead volume variance.

Question

Quizplus · Accepted Answer

The variable overhead spending variance is the part of the variance that arises from the difference between the actual variable overhead costs incurred and the standard costs that should have been incurred for the actual level of activity.

The Part of the Variable Overhead Budget Variance Due to the Difference