Which of the following statements is false?
A) An unfavourable variable overhead spending variance can result from paying a higher than expected price for variable overhead items.
B) A favourable variable overhead spending variance can result from using less of the variable overhead items than expected at the actual activity level.
C) An unfavourable variable overhead spending variance can result from producing fewer units than expected at the actual activity level.
D) The spending variance is the real control variance for variable overhead.

Question

Quizplus · Accepted Answer

An unfavourable variable overhead spending variance typically results from paying more for variable overhead items or using more of them than expected, not from producing fewer units. Producing fewer units than expected would more directly affect the efficiency or volume variances, not the spending variance.

Which of the Following Statements Is False