The variable overhead efficiency variance measures the efficiency with which the cost-allocation base is used.

Question

Quizplus · Accepted Answer

The variable overhead efficiency variance is used to measure the efficiency with which the cost-allocation base is used in the production process. It indicates how well the actual level of the allocation base activity performed during the period matched the level that should have been used to produce the actual output achieved during the period.

The Variable Overhead Efficiency Variance Measures the Efficiency with Which