Which of the following overhead variances is not correctly paired with a possible explanation for that variance?
A)Favorable spending variance - incurred a different cost to purchase variable overhead items
B)Favorable efficiency variance - efficient use of the activity base
C)Unfavorable efficiency variance - paid more than expected for variable overhead items
D)Unfavorable spending variance - used variable overhead items inefficiently

Question

Quizplus · Accepted Answer

The unfavorable efficiency variance is typically due to inefficient use of the activity base (e.g., labor hours, machine hours) rather than paying more for variable overhead items, which would instead explain an unfavorable spending variance.

Which of the Following Overhead Variances Is Not Correctly Paired