Question: The variable overhead spending variance is the difference between the actual cost of variable overhead items and the amount of variable overhead cost that is

The variable overhead spending variance

is the difference between the actual cost of variable overhead items and the amount of variable overhead cost that is expected to be incurred at the actual level of activity base experienced.

captures whether the company has paid more or less for variable overhead items. relates to the efficient use of the activity base rather than the efficient use of the variable overhead item. is unfavorable when more variable overhead items are used than allowed at the level of activity achieved.

The variable overhead spending variance is the

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