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 known as the variable overhead spending variance. This variance helps to identify the difference between the actual cost of purchasing variable overhead items and the expected or budgeted cost.

The Difference Between the Actual Cost of Variable Overhead Items