Which formula reflects the variable overhead spending variance?
A) (AH - SH) x SVOR
B) (AH - SH) x AVOR
C) (AVOR - SVOR) x SH
D) (AVOR - SVOR) x AH

Name: Which formula reflects the variable overhead spending variance? A) (AH - SH) x SVOR B) (AH - SH) x AVOR C) (AVOR - SVOR) x SH D) (AVOR - SVOR) x AH
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Question

Quizplus · Accepted Answer

The variable overhead spending variance is calculated by comparing the actual variable overhead rate (AVOR) to the standard variable overhead rate (SVOR) and multiplying by the actual hours (AH) worked.

Which Formula Reflects the Variable Overhead Spending Variance