Which of the following is not an explanation for a favorable variable overhead spending variance?
A)Paid less than expected for indirect material
B)Used variable overhead items efficiently
C)Paid less than expected for indirect labor
D)Efficient use of the activity base

Question

Quizplus · Accepted Answer

Efficient use of the activity base would lead to a favorable efficiency variance, not a spending variance. A favorable spending variance is due to paying less for overhead costs than expected.

Which of the Following Is Not an Explanation for a Favorable