Assuming that variable overhead is applied to each job as it is completed, when is the variable overhead spending variance recorded?
A) When each job is completed
B) When preparing period-end financial statements
C) When direct labor is recorded
D) When the variable overhead costs are incurred
E) None of the above

Question

Quizplus · Accepted Answer

"The entire variable overhead spending variance would be recorded at the end of the period as the over- or under-applied overhead amount written off to Cost of Goods sold."

Assuming That Variable Overhead Is Applied to Each Job as It