A performance report for variable overhead reveals
A) the aggregate variable overhead spending and efficiency variances.
B) the volume and spending variances.
C) the spending and efficiency variances for each variable overhead item.
D) both the aggregate variable overhead spending and efficiency variances and the spending and efficiency variances for each variable overhead item.
E) both the volume and spending variances and the spending and efficiency variances for each variable overhead item.

Question

Quizplus · Accepted Answer

A performance report for variable overhead should provide both the aggregate spending and efficiency variances, as well as the spending and efficiency variances for each individual item, in order to give a comprehensive analysis of the causes and effects of the variances on overall performance. Option A provides only the aggregate variances, while option B focuses only on volume and spending variances, and option C only provides variances for each item without showing the overall picture. Option E includes volume and spending variances but leaves out the important breakdown of variances for each item.

A Performance Report for Variable Overhead Reveals