The two variances for variable overhead are
A)spending and efficiency variances.
B)spending and budget variances.
C)budget and volume variances.
D)budget and efficiency variances.

Question

Quizplus · Accepted Answer

The two variances for variable overhead are the spending variance and the efficiency variance. The spending variance measures the difference between the actual variable overhead cost incurred and the budgeted cost for the actual activity level, while the efficiency variance measures the difference between the standard cost for the actual activity level and the budgeted cost for the actual activity level.

The Two Variances for Variable Overhead Are