Which of the following statements about variable overhead variances is correct?
A) Variable overhead efficiency variance highlights any inefficient uses of variable indirect costs such as electricity.
B) Variable overhead efficiency variance is not a useful control tool.
C) Variable overhead spending variance is useful only as a product costing tool.
D) Variable overhead spending variance may be caused by lower than expected usage of direct labour hours.

Question

Quizplus · Accepted Answer

The Answer of Which of the following statements about variable overhead variances is correct?
A) Variable overhead efficiency variance highlights any inefficient uses of variable indirect costs such as electricity.
B) Variable overhead efficiency variance is not a useful control tool.
C) Variable overhead spending variance is useful only as a product costing tool.
D) Variable overhead spending variance may be caused by lower than expected usage of direct labour hours.

Which of the Following Statements About Variable Overhead Variances Is