The difference between the actual cost of variable overhead items and the amount of variable overhead cost that is expected to be incurred at the actual level of activity base experienced is the
A)the variable overhead flexible budget variance.
B)the manufacturing overhead expense variance.
C)the variable overhead efficiency variance.
D)the variable overhead spending variance.

Question

Quizplus · Accepted Answer

The difference between the actual cost of variable overhead items and the amount of variable overhead cost that is expected to be incurred at the actual level of activity base experienced is the variable overhead spending variance. This variance measures how well the company controlled the actual costs of variable overhead items, such as electricity or supplies, compared to the budgeted amount.

The Difference Between the Actual Cost of Variable Overhead Items