The two variances for variable overhead are
A) spending and efficiency variances.
B) spending and budget variances.
C) budget and volume variances.
D) spending and volume variances.
E) volume and efficiency variances.

Question

Quizplus · Accepted Answer

The two variances for variable overhead are spending variance and efficiency variance. Spending variance measures the difference between actual variable overhead cost incurred and the budgeted variable overhead cost. Efficiency variance measures the difference between the actual quantity of variable overhead used and the standard quantity allowed for the actual output achieved.

The Two Variances for Variable Overhead Are