Which of the following may cause an unfavourable variable overhead spending variance?
A) the use of excessive quantities of variable overhead items
B) the payment of lower prices for variable overhead items used
C) the payment of higher prices for variable overhead items used
D) the use of excessive quantities of the variable overhead allocation base

Question

Quizplus · Accepted Answer

Using excessive quantities of variable overhead items would lead to an unfavorable variable overhead spending variance, as the actual costs incurred would exceed the budgeted costs. Choosing B would result in a favorable variable overhead spending variance, while choosing C would have no effect on the spending variance. Option D is related to the variable overhead efficiency variance, not the spending variance.

Which of the Following May Cause an Unfavourable Variable Overhead