The difference between the actual variable overhead rate and the standard variable overhead rate,multiplied by the actual amount of the cost driver,is the:
A)variable overhead rate variance.
B)variable overhead efficiency variance.
C)variable overhead volume variance.
D)over- or underapplied variance.

Question

Quizplus · Accepted Answer

The difference between the actual variable overhead rate and the standard variable overhead rate multiplied by the actual amount of the cost driver is the variable overhead rate variance. This variance measures the difference between the actual cost of the variable overhead and the amount that should have been incurred according to the standards set.

The Difference Between the Actual Variable Overhead Rate and the Standard