Which of the following is used in the computation of the variable overhead spending variance?
Actual variable
Factory overhead
Flexible budget based
On standard hours
Standard variable
Overhead rate
A) No
Yes
No
B) No
No
No
C) Yes
No
Yes
D) Yes
Yes
Yes

Question

Quizplus · Accepted Answer

The computation of the variable overhead spending variance involves comparing actual variable overhead costs with flexible budget based on standard hours. The standard variable overhead rate is used in computing the variable overhead efficiency variance, not the spending variance. The factory overhead is a broad term that includes both variable and fixed overhead costs, so it is not specific enough to be the correct answer.

Which of the Following Is Used in the Computation of the Variable