A favorable variable overhead spending variance can be the result of paying lower prices than budgeted for variable overhead items such as energy.

Question

Quizplus · Accepted Answer

If the actual price paid for variable overhead items such as energy is lower than budgeted, it will result in a favorable variable overhead spending variance as the actual cost incurred is lower than what was budgeted. This variance indicates effective cost management and can contribute to a better overall performance.

A Favorable Variable Overhead Spending Variance Can Be the Result