Variable overhead spending variances can result from unattainable variable allocation rates. In turn, those rates may be caused by:
I. Inappropriate allocation bases
II. Poor estimates of total overhead costs
III. Change in estimated life of amortizable assets
A) I only
B) I and II only
C) I and III only
D) I, II, and III

Question

Quizplus · Accepted Answer

Variable overhead spending variances can result from unattainable variable allocation rates. In turn, those rates may be caused by:
I. Inappropriate allocation bases
II. Poor estimates of total overhead costs
III. Change in estimated life of amortizable assets

Variable Overhead Spending Variances Can Result from Unattainable Variable Allocation