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Expense budget planning is an important part of any budget. An expense budget is a list of forecasted expenses within a set amount of time. An expense budget could cover a quarter, an entire year or just a month.
Definition and Explanation: Overhead spending variance is the difference between actual expenses incurred and the budgeted allowance based on actual hours worked. If actual expenses incurred are more than budgeted allowance based on actual hours worked, an unfavorable spending variance occurs.