The variable overhead spending variance is calculated as
A)Actual cost − (actual quantity × standard price).
B)Actual cost − (standard quantity × standard price).
C)Standard cost − (actual quantity × actual price).
D)Actual results minus the variable overhead flexible budget amount.

Question

Quizplus · Accepted Answer

The variable overhead spending variance is calculated as the actual cost incurred minus the cost that should have been incurred based on the actual quantity of the allocation base used at the standard price, which is represented by option A: Actual cost − (actual quantity × standard price).

The Variable Overhead Spending Variance Is Calculated as