The variable overhead spending variance measures the aggregate effect of differences between the
A) the total variable overhead and the applied variable overhead.
B) the total variable overhead and total budgeted overhead costs.
C) the total variable overhead and the budgeted overhead for the expected activity.
D) the actual variable overhead rate and the standard variable overhead rate.
E) None of these.

Question

Quizplus · Accepted Answer

The variable overhead spending variance is calculated by comparing the actual variable overhead rate to the standard variable overhead rate, multiplied by the actual hours worked. This variance measures the efficiency in controlling variable overhead costs.

The Variable Overhead Spending Variance Measures the Aggregate Effect of Differences