Underfoot Products uses standard costing.The following information about overhead was generated during May:
-Compute the variable overhead spending variance.
A)$10,000 (
B)$10,000 (
C)$40,000 (
D)$40,000 (

Question

Underfoot Products uses standard costing.The following information about overhead was generated during May:  
-Compute the variable overhead spending variance.
A)$10,000 (
B)$10,000 (
C)$40,000 (
D)$40,000 (

Quizplus · Accepted Answer

Variable overhead spending variance is the difference between the actual variable overhead costs incurred and the budgeted variable overhead costs. In this case, the actual variable overhead costs are $50,000 and the budgeted variable overhead costs are $40,000. Therefore, the variable overhead spending variance is $50,000 - $40,000 = $10,000 (F).

Underfoot Products Uses Standard Costing