The variable overhead flexible-budget variance measures the difference between:
A)actual variable overhead costs and the static budget for variable overhead costs
B)actual variable overhead costs and the flexible budget for variable overhead costs
C)the static budget for variable overhead costs and the flexible budget for variable overhead costs
D)None of these answers is correct.

Question

Quizplus · Accepted Answer

The variable overhead flexible-budget variance compares the actual variable overhead costs with the flexible budget for variable overhead costs. It helps in determining whether the actual variable overhead costs are higher or lower than what they should have been at a given level of activity. The static budget for variable overhead costs is not relevant because it does not account for changes in the level of activity.

The Variable Overhead Flexible-Budget Variance Measures the Difference Between