The variable overhead spending variance captures
A)whether the company has paid more or less for variable overhead items.
B)the relative efficiency with which variable overhead items are used.
C)whether the company is more or less efficient with respect to the production activity, since variable overhead varies with production activity.
D)whether the company used more or fewer variable overhead items and the relative efficiency with which variable overhead items are used.

Question

Quizplus · Accepted Answer

The variable overhead spending variance captures the difference between the actual cost of variable overhead items and the budgeted cost of those items. It shows whether the company has paid more or less for variable overhead items, regardless of the efficiency with which they were used or the production activity level.

The Variable Overhead Spending Variance Captures