For variable overhead, the two component variances are the spending variance and the efficiency variance; the $q,$ variance is the result of comparing the actual costs with budgeted costs; and the variable overhead $q,$ variance is the result of efficient or inefficient use of labor because variable overhead is assumed to vary. with direct labor hours.

A$)$ efficiency; savings

B$)$ efficiency; spending

C$)$ spending; efficiency

D$)$ spending; savings

E$)$ none of the above