Variable overhead spending variance
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Variable overhead spending variance is the difference between actual variable overhead cost per unit and budgeted variable overhead cost per unit of the cost-allocation base, multiplied by actual quantity of variable overhead cost-allocation base used for actual output.
Definitions
According to Cost Accounting by Horngren, Datar, Rajan (14th edition),
- Variable overhead spending variance. The difference between actual variable overhead cost per unit and budgeted variable overhead cost per unit of the cost-allocation base, multiplied by actual quantity of variable overhead cost-allocation base used for actual output.
