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

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