The variable overhead spending variance has to do with the efficient use of
A)The activity base.
B)The overhead items.
C)All variable manufacturing costs.
D)All of these ans choices are correct.

Question

Quizplus · Accepted Answer

The variable overhead spending variance measures the difference between the actual variable overhead rate per unit of activity and the budgeted variable overhead rate per unit of activity. Therefore, it is related to the efficient use of the activity base, which is typically a measure of production volume, such as machine hours or direct labor hours. The variance does not directly relate to the overhead items or all variable manufacturing costs.

The Variable Overhead Spending Variance Has to Do with the Efficient