Figure 6

-Refer to Figure 6. The variable overhead spending (expenditure) variance would be
A) £2,000 favorable
B) £1,200 favorable
C) £400 favorable
D) £200 favorable

Question

Figure 6
 
-Refer to Figure 6. The variable overhead spending (expenditure) variance would be
A) £2,000 favorable 
B) £1,200 favorable 
C) £400 favorable 
D) £200 favorable

Quizplus · Accepted Answer

The variable overhead spending variance is calculated as the difference between the actual variable overhead costs and the budgeted variable overhead costs based on actual hours worked. If the variance is £400 favorable, it means the actual costs were £400 less than the budgeted costs.

Figure 6 -Refer to Figure 6. the Variable Overhead Spending (Expenditure) Variance