Which of the following variances would be useful in calling attention to possible problems in the control of spending on overhead items?
$\begin{array}{|l|l|l|}
\hline \text { Option } & \begin{array}{l}
\text { Variable overhead spending } \
\text { variance }
\end{array} & \text { Fixed overhead volume variance } \
\hline \text { A } & \text { No } & \text { No } \
\hline \text { B } & \text { No } & \text { Yes } \
\hline \text { C } & \text { Yes } & \text { No } \
\hline \text { D } & \text { Yes } & \text { Yes } \
\hline
\end{array}$
A) Option A
B) Option B
C) Option C
D) Option D

Question

Quizplus · Accepted Answer

The variable overhead spending variance is useful for controlling spending on overhead items because it measures the difference between the actual costs incurred and the standard costs for the actual production volume. The fixed overhead volume variance, however, relates to the utilization of production capacity, not the control of spending.

Which of the Following Variances Would Be Useful in Calling