What Is the Variable Overhead Spending Variance

question 105

Multiple Choice

What is the variable overhead spending variance?

• A) the total variable overhead less the applied variable overhead
• B) the total variable overhead less total budgeted overhead costs
• C) the total variable overhead less the budgeted overhead for the expected activity
• D) the actual variable overhead rate less the standard variable overhead rate, multiplied by the actual hours

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Definitions:

Cash Equivalents

Short-term, highly liquid investments that are readily convertible to known amounts of cash and subject to an insignificant risk of changes in value.

Statement of Financial Position

A financial statement that shows an entity's assets, liabilities, and equity at a specific point in time, providing a snapshot of its financial condition.

Disclosed and Reconciled

The process in which financial activities are explained in detail and discrepancies between different accounts or reports are resolved.