The difference between actual overhead costs and overhead costs applied is the
A)budget variance.
B)spending variance.
C)total overhead variance.
D)volume variance.

Question

Quizplus · Accepted Answer

The actual overhead costs are what a company actually spends on overhead, while the overhead costs applied are what the company expects to spend based on its budget and production levels. The difference between the two is known as the total overhead variance.

The Difference Between Actual Overhead Costs and Overhead Costs Applied