What is the variable overhead spending variance?
A) the total variable overhead less the applied variable overhead
B) the total variable overhead less total budgeted overhead costs
C) the total variable overhead less the budgeted overhead for the expected activity
D) the actual variable overhead rate less the standard variable overhead rate, multiplied by the actual hours

Question

Quizplus · Accepted Answer

The variable overhead spending variance is calculated by taking the difference between the actual variable overhead rate and the standard variable overhead rate, then multiplying by the actual hours worked.

What Is the Variable Overhead Spending Variance