What May Cause an Unfavourable Variable Overhead Spending Variance

question 78

Multiple Choice

What may cause an unfavourable variable overhead spending variance?

• A)the use of excessive quantities of variable overhead items
• B)the payment of lower prices for variable overhead items used
• C)the use of excessive quantities of the variable overhead allocation base
• D)the payment of higher direct materials purchases

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Definitions:

Currency Futures

Financial contracts to exchange a specified amount of a currency at a predetermined future date and price, used to hedge against or speculate on currency movements.

Non-amortized Debt

Debt that is not regularly reduced through payments covering principle and interest over time.

Interest Payments

Interest payments are the regular payments made to a lender by a borrower for the use of borrowed money, typically calculated as a percentage of the principal.

Principal

The original sum of money borrowed in a loan or the initial amount of investment, exclusive of any interest or dividends.