Use the following to answer questions:
Controller Rachel Tabak of Johnson Inc. is in the process of analyzing its manufacturing overhead costs for March. March results follow:

-What is the variable overhead spending variance?
A) $40,000 unfavorable
B) $25,000 unfavorable
C) $25,000 favorable
D) $40,000 favorable

Question

Use the following to answer questions:
Controller Rachel Tabak of Johnson Inc. is in the process of analyzing its manufacturing overhead costs for March. March results follow:
 
-What is the variable overhead spending variance?
A) $40,000 unfavorable 
B) $25,000 unfavorable 
C) $25,000 favorable 
D) $40,000 favorable

Quizplus · Accepted Answer

The variable overhead spending variance is calculated as the difference between the actual variable overhead costs incurred and the standard variable overhead costs based on actual hours worked. If the actual costs are higher than the standard costs, the variance is unfavorable.

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