The overhead variance calculated as total budgeted overhead at the actual input production level minus total budgeted overhead at the standard hours allowed for actual output is the
A)efficiency variance.
B)spending variance.
C)volume variance.
D)budget variance.

Question

Quizplus · Accepted Answer

The efficiency variance measures the difference between the budgeted overhead for the actual input production level and the budgeted overhead for the standard hours allowed for the actual output, reflecting how efficiently resources were used.

The Overhead Variance Calculated as Total Budgeted Overhead at the Actual