What are the two variances for variable overhead?
A) volume and budget variances
B) budget and spending variances
C) efficiency and volume variances
D) spending and efficiency variances

Question

Quizplus · Accepted Answer

The two variances for variable overhead are spending and efficiency variances. The spending variance is the difference between the actual variable overhead cost incurred and the budgeted variable overhead cost, while the efficiency variance is the difference between the actual hours worked and the budgeted hours worked, multiplied by the variable overhead rate.

What Are the Two Variances for Variable Overhead