The two variances for variable overhead are
A) spending (expenditure) and efficiency variances
B) spending and budget variances
C) budget and volume variances
D) budget and efficiency variances

Question

Quizplus · Accepted Answer

The two variances for variable overhead are spending (expenditure) and efficiency variances. The spending variance measures the difference between actual variable overhead costs and the budgeted variable overhead costs, while the efficiency variance measures the difference between the actual variable overhead costs and the standard variable overhead costs based on the actual level of activity.

The Two Variances for Variable Overhead Are