Multiple Choice
The variable overhead spending variance is calculated by comparing:
A) Actual variable overhead cost incurred and the standard variable overhead rate times the actual amount of allocation base used during the period
B) Actual variable overhead cost incurred and the fixed overhead cost incurred
C) Actual price of direct materials and the expected price
D) Actual direct labour hours used and the expected amount
Correct Answer:

Verified
Correct Answer:
Verified
Q25: Identifying the reasons for variances is usually
Q26: The process of calculating variances and analyzing
Q27: How do managers decide which variances are
Q28: The direct materials price variance is often
Q29: Everett, Inc. budgeted $1,488,000 for total overhead.
Q31: Everett, Inc. budgeted $1,488,000 for total overhead.
Q32: Hogle Mfg. Co. uses a standard
Q33: Mason, Inc. uses a standard costing system.
Q34: White, Inc. produces a chemical product
Q35: Variable overhead spending variances can result from