Which of the Following Is True About the Variable Overhead

question 74

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.

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