Which of the Following Overhead Variances Is Correctly Paired with a Possible

question 91

Multiple Choice

Which of the following overhead variances is correctly paired with a possible explanation for that variance?

• A)Favorable spending variance - efficient use of the activity base
• B)Favorable efficiency variance - paid less than expected for variable overhead items
• C)Unfavorable efficiency variance - used more than expected for variable overhead items
• D)Unfavorable spending variance - used variable overhead items inefficiently

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