The variable overhead spending variance
A)Is the difference between the actual cost of variable overhead items and the amount of variable overhead cost that is expected to be incurred at the actual level of activity base experienced.
B)Has to do with the efficient use of the activity base rather than the efficient use of the variable overhead item.
C)Captures whether the company has paid more or less for variable overhead items.
D)All of these ans choices are correct.

Question

Quizplus · Accepted Answer

The variable overhead spending variance is the difference between the actual cost of variable overhead items and the amount of variable overhead cost that is expected to be incurred at the actual level of activity base experienced. It has to do with the efficient use of the activity base rather than the efficient use of the variable overhead item. It captures whether the company has paid more or less for variable overhead items.

The Variable Overhead Spending Variance