has to do with the efficient use of the activity base rather than the efficient use of the variable overhead itemThe variable overhead spending variance captures
A)Whether the company has paid more or less for variable overhead items.
B)The relative efficiency with which variable overhead items are used.
C)Whether a company is more or less efficient with respect to the production activity,since variable overhead varies with production activity.
D)Both whether the company has paid more or less for variable overhead items and the relative efficiency with which variable overhead items are used.

Question

Quizplus · Accepted Answer

The variable overhead spending variance captures both aspects mentioned in options A and B, i.e., whether the company has paid more or less for variable overhead items and the relative efficiency with which variable overhead items are used. Additionally, it also considers the production activity as variable overhead varies with the level of production activity.

Has to Do with the Efficient Use of the Activity