The total variable overhead variance is the difference between
A)the actual overhead and the budgeted overhead.
B)the total actual variable overhead and the total budgeted variable overhead.
C)the total actual variable overhead and the total applied variable overhead.
D)the total actual variable overhead and the total applied overhead.
E)none of these.

Question

Quizplus · Accepted Answer

The total variable overhead variance measures the difference between the actual variable overhead incurred and the total applied variable overhead, which is calculated by multiplying the actual activity level by the predetermined variable overhead rate. Option A is incorrect as it refers to budgeted overhead rather than budgeted variable overhead. Option B is incorrect as it does not take into account the difference between actual and applied variable overhead. Option D is incorrect as it includes fixed overhead rather than just variable overhead. Therefore, option C is the correct answer.

The Total Variable Overhead Variance Is the Difference Between