An unfavorable variable overhead spending variance may be caused by
A) the use of excessive quantities of variable overhead items.
B) the payment of lower prices for variable overhead items used.
C) the use of excessive quantities of the variable overhead allocation base.
D) both the use of excessive quantities of variable overhead items and the payment of lower prices for variable overhead items used.

Question

Quizplus · Accepted Answer

An unfavorable variable overhead spending variance means actual variable overhead costs were higher than the budgeted variable overhead costs. This could be caused by using excessive quantities of variable overhead items, resulting in higher costs. Option B would result in a favorable variance, as lower prices for variable overhead items would result in lower actual costs than budgeted. Option C pertains to the variable overhead efficiency variance, not the spending variance. Option D includes a mix of potential causes, but the question is asking for the main cause.

An Unfavorable Variable Overhead Spending Variance May Be Caused by