If a company was concerned with controlling expenditures on overhead items, which variance would be useful?
A)fixed overhead volume variance
B)variable overhead efficiency variance
C)variable overhead spending variance
D)both b and c

Question

Quizplus · Accepted Answer

The variable overhead spending variance compares the actual cost of a company's overhead items with the expected or budgeted cost, which is useful in controlling expenditures on overhead items. The fixed overhead volume variance and variable overhead efficiency variance are related to the volume of output produced and the efficiency of the production process, respectively, and are not as directly related to controlling overhead expenses.

If a Company Was Concerned with Controlling Expenditures on Overhead