Question

The difference between the total actual factory overhead and the total factory overhead applied to production is the:

A. sum of the spending, efficiency, budget, and volume variances.

B. controllable variance.

C. efficiency variance.

D. spending variance.

E. volume variance.

Answer 1

The difference between the total actual factory overhead and the total factory overhead applied to production is the spending variance.

Step-by-step explanation:

The difference between the total actual factory overhead and the total factory overhead applied to production is the spending variance. This variance represents the difference between the actual amount spent on overhead and the amount that was budgeted or planned. It helps evaluate whether the actual costs were higher or lower than expected.