Which of the following variances would be useful in calling attention to possible problems in the control of spending on overhead items? $\begin{array}{lll}
\text { Variable overhead } &\text { Fixed overhead } \
\text { spending variance }& \text { volume variance } \
\text { A) No } & \text { No } \
\text { B) No } & \text { Yes } \
\text {C) Yes } & \text { No } \
\text { D) Yes } & \text { Yes }
\end{array}$
A) Option A
B) Option B
C) Option C
D) Option D

Question

Quizplus · Accepted Answer

The spending variance would be useful in calling attention to possible problems in the control of spending on overhead items. Fixed overhead spending is likely to be more predictable than variable overhead spending, so the variable overhead spending variance would be a more appropriate measure. The volume variance measures efficiency rather than spending control. Therefore, the correct option is C.

Which of the Following Variances Would Be Useful in Calling