Multiple Choice
Which of the following is true about the variable overhead spending variance?
A) The variable overhead spending variance measures the aggregate effect of differences in the actual variable overhead rate and the standard variable overhead rate.
B) The variable overhead spending variance measures the change in variable overhead consumption that occurs because of efficient (or inefficient) use of direct labor.
C) The variable overhead spending variance is calculated by deducting actual direct labor hours used from standard direct labor hours that should have been used.
D) The variable overhead spending variance is calculated by deducting actual variable overhead from standard variable overhead.
Correct Answer:
Verified
Correct Answer:
Verified
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