What are the factors that affect the spending variance for variable manufacturing overhead? A - 1. Actual prices of individual inputs included in variable overhead cost, such as price of energy, indirect materials, or indirect labor, are different than budgeted prices of these inputs. 2. Relative to the flexible budget, the changes in the actual quantity usage of individual items in the variable overhead-cost pool is different than the change in machine hours. Instructors Q - Can we have one affect be favorable and one be unfavorable at the same time? Criteria If outside of our textbook, please provide your source or reference. Reference: Horngren, C. T., Datar, S. M., Foster, G., Rajan, M. V., & ChristopherLttner. (2009). Cost Accounting a Managerial Emphasis . Upper Saddle River, New Jersey: Pearson Education, Inc