The variable overhead spending variance measures the difference between ________, multiplied by the actual quantity of variable overhead cost-allocation base used.
A) the actual variable overhead cost per unit and the budgeted variable overhead cost per unit
B) the standard variable overhead cost rate and the budgeted variable overhead cost rate
C) the actual variable overhead cost per unit and the budgeted fixed overhead cost per unit
D) the actual quantity per unit and the budgeted quantity per unit

Question

Quizplus · Accepted Answer

The variable overhead spending variance is calculated by subtracting the actual variable overhead cost per unit from the budgeted variable overhead cost per unit and then multiplying the difference by the actual quantity of variable overhead cost-allocation base used. This measures the difference between the actual variable overhead costs incurred and the budgeted variable overhead costs, taking into account the actual level of activity.

The Variable Overhead Spending Variance Measures the Difference Between ________