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. This means that if there is a difference between the actual amount of the cost driver used and the standard amount of the cost driver that should have been used to produce the actual level of output, the efficiency variance will occur.

What Will Cause the Variable-Overhead Efficiency Variance