The difference in each period between total variable overhead cost incurred and the standard variable overhead cost for the period based on the actual quantity of the cost driver used to apply variable overhead cost is the:
A) Total variable overhead variance.
B) Variable overhead spending variance.
C) Variable overhead rate variance.
D) Variable overhead efficiency variance.
E) Variable overhead flexible-budget variance.

Question

Quizplus · Accepted Answer

The variable overhead spending variance is the difference between the actual variable overhead costs incurred and the standard variable overhead costs based on the actual quantity of the cost driver used.

The Difference in Each Period Between Total Variable Overhead Cost