Question

Which of the following variances would be useful to help control overhead spending?

Variable-Overhead Spending Variance
Fixed-Overhead Budget Variance
Fixed-Overhead Volume Variance

A. Yes Yes Yes

B. Yes Yes No

C. Yes No No

D. Yes No Yes

E. No Yes No

Answer 1

The variances that would be useful to help control overhead spending are the Variable-Overhead Spending Variance and the Fixed-Overhead Budget Variance.

Step-by-step explanation:

The variances that would be useful to help control overhead spending are the Variable-Overhead Spending Variance and the Fixed-Overhead Budget Variance. The Variable-Overhead Spending Variance measures the difference between the actual variable overhead spending and the standard or expected variable overhead spending.

It provides information on whether overhead spending is higher or lower than expected. The Fixed-Overhead Budget Variance measures the difference between the actual fixed overhead costs and the budgeted or planned fixed overhead costs. It helps identify any deviations from the budgeted amount.