The difference between actual variable overhead and budgeted variable overhead based upon actual hours is referred to as the variable overhead efficiency variance.

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The difference between actual variable overhead and budgeted variable overhead based upon actual hours is referred to as the variable overhead spending variance. The variable overhead efficiency variance is the difference between the standard cost of the variable overhead for actual production and the budgeted variable overhead based on standard hours allowed for actual production.

The Difference Between Actual Variable Overhead and Budgeted Variable Overhead