Which of the following overhead variances is not correctly paired with a possible explanation for that variance?
A)Favorable spending variance - used variable overhead items efficiently
B)Favorable efficiency variance - efficient use of the activity base
C)Unfavorable efficiency variance - paid more than expected for variable overhead items
D)Unfavorable spending variance - used variable overhead items inefficiently

Question

Quizplus · Accepted Answer

An unfavorable efficiency variance means that more of the activity base was used than expected to produce a given level of output. It is not related to the cost per unit of the variable overhead items used.

Which of the Following Overhead Variances Is Not Correctly Paired