Which of the following overhead variances is correctly paired with a possible explanation for that variance?
A)Favorable spending variance - efficient use of the activity base
B)Favorable efficiency variance - paid less than expected for variable overhead items
C)Unfavorable efficiency variance - paid more than expected for variable overhead items
D)Unfavorable spending variance - used variable overhead items inefficiently

Question

Quizplus · Accepted Answer

An unfavorable spending variance occurs when the actual cost is higher than the budgeted cost, which can be due to inefficient use of variable overhead items.

Which of the Following Overhead Variances Is Correctly Paired with a Possible