What will cause the variable-overhead eﬃciency variance?
A)Eﬃcient or ineﬃcient use of a speciﬁc component of variable overhead (e.g., electricity).
B)Full or partial utilization of major equipment resources.
C)Production of units in excess of the number of units sold.
D)Eﬃcient or ineﬃcient use of the cost driver (e.g., machine hours) for variable overhead.
E)Changes in the salary cost of manufacturing supervisors.

Question

Quizplus · Accepted Answer

The variable-overhead efficiency variance is caused by the efficient or inefficient use of the cost driver for variable overhead, such as machine hours. A, B, C, and E may impact other variances but not the variable-overhead efficiency variance.

What Will Cause the Variable-Overhead Eﬃciency Variance