Which of the following variances would be useful to help control overhead spending?

Question

Quizplus · Accepted Answer

The variable-overhead spending variance and fixed-overhead budget variance would be useful to help control overhead spending. The variable-overhead spending variance measures the difference between the actual variable-overhead costs incurred and the expected variable-overhead costs based on the standard rate and usage. The fixed-overhead budget variance measures the difference between the actual fixed-overhead costs incurred and the budgeted fixed-overhead costs. Together, these variances can help identify areas where overhead spending may be exceeding expectations and allow for adjustments to be made. The other variance options (fixed-overhead volume variance and fixed-overhead spending variance) are less relevant for controlling overhead spending.

Which of the Following Variances Would Be Useful to Help