The variance that captures the effect of efficient use of the activity base on the cost of variable overhead is the variable overhead
A)spending variance.
B)efficiency variance.
C)volume variance.
D)activity variance.

Question

Quizplus · Accepted Answer

The efficiency variance captures the effect of efficient use of activity base on the cost of variable overhead. It measures the difference between the actual quantity of activity base used and the standard quantity of activity base that should have been used, multiplied by the standard variable overhead rate per unit of activity base.

The Variance That Captures the Effect of Efficient Use of the Activity