Which of the following statements is true of variable overhead costs?
A) Variable overhead costs always have unused capacity.
B) Variable overhead costs have no production-volume variance.
C) Variable overhead costs have no spending variance.
D) Variable overhead costs have no efficiency variance.

Question

Quizplus · Accepted Answer

Variable overhead costs are directly tied to production levels, meaning they do not have a production-volume variance. This variance typically applies to fixed overhead costs, which remain constant regardless of production levels. Variable costs, however, fluctuate with production volume, eliminating the concept of a production-volume variance for them.

Which of the Following Statements Is True of Variable Overhead