In a Four-Variance Method Analyzing Factory Overhead,the Variable Factory Overhead

question 3

Multiple Choice

In a four-variance method analyzing factory overhead,the variable factory overhead spending variance measures:

• A)The effect of differences in the actual variable factory overhead and the standard variable factory overhead rate multiplied by the actual hours.
• B)The difference in the actual hours incurred and standard hours allowed for a given level of production.
• C)The difference between actual and applied variable factory overhead.
• D)The difference between actual variable factory overhead and budgeted variable factory overhead.