Which of the following overhead variances is correctly paired with a possible explanation for that variance?
A)Favorable spending variance - efficient use of the activity base
B)Favorable efficiency variance - paid less than expected for variable overhead items
C)Unfavorable efficiency variance - used more than expected for variable overhead items
D)Unfavorable spending variance - used variable overhead items inefficiently

Question

Quizplus · Accepted Answer

An unfavorable efficiency variance indicates that more variable overhead items were used than expected, which could be due to inefficient use of the activity base.

Which of the Following Overhead Variances Is Correctly Paired with a Possible