Which of the following elements is (are) needed in a straightforward calculation of the variable-overhead spending variance?
A) Variable overhead incurred during the period.
B) Budgeted variable overhead based on actual hours worked.
C) Standard variable overhead applied to production.
D) Both variable overhead incurred during the period and budgeted variable overhead based on actual hours worked.
E) Both variable overhead incurred during the period and standard variable overhead applied to production.

Question

Quizplus · Accepted Answer

The variable-overhead spending variance is calculated by comparing the actual variable overhead incurred during the period to the budgeted variable overhead based on the actual hours worked. This variance helps in understanding how effectively a company is managing its variable overhead costs in relation to the actual production activity.

Which of the Following Elements Is (Are) Needed in a Straightforward