A large unanticipated reduction in the property taxes on a company's factory would,all other things equal,most likely cause:
A)A favorable overhead spending variance.
B)An unfavorable overhead spending variance.
C)A favorable overhead volume variance.
D)An unfavorable overhead volume variance.

Question

Quizplus · Accepted Answer

A reduction in property taxes decreases the actual overhead costs compared to the budgeted or standard costs, leading to a favorable overhead spending variance because the company spends less than expected.

A Large Unanticipated Reduction in the Property Taxes on a Company's