The total variable overhead variance can be expressed as the sum of a. the underapplied variable overhead and the spending variance. b. the efficiency variance and the overapplied variable overhead. c. the spending, efficiency, and volume variances. d. the spending and efficiency variances. e. none of these.
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
The total variable overhead variance can be expressed as the sum of a. the underapplied variable overhead and the spending variance. b. the efficiency variance and the overapplied variable overhead. c. the spending, efficiency, and volume variances. d. the spending and efficiency variances. e. none of these.
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