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 materials 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 called the variable overhead spending variance. This variance arises due to the difference in the price of the variable overhead item used and the price that was expected to be paid for that item.

The Difference Between the Actual Cost of Variable Overhead Items