The variable overhead spending variance is calculated by comparing:
A) Actual variable overhead cost incurred and the standard variable overhead rate times the actual amount of allocation base used during the period
B) Actual variable overhead cost incurred and the fixed overhead cost incurred
C) Actual price of direct materials and the expected price
D) Actual direct labour hours used and the expected amount

Question

Quizplus · Accepted Answer

The variable overhead spending variance measures the difference between the actual variable overhead cost incurred and the standard variable overhead rate times the actual amount of allocation base used during the period. The other options do not relate to the calculation of the variable overhead spending variance.

The Variable Overhead Spending Variance Is Calculated by Comparing