The variable overhead efficiency variance claims to measure
A)changes in spending efficiency.
B)productive efficiency.
C)changes in variable overhead costs because of the efficient (inefficient)use of the cost driver.
D)changes in variable overhead costs attributable to inefficient purchase of variable inputs.
E)none of these

Question

Quizplus · Accepted Answer

The variable overhead efficiency variance measures the change in variable overhead costs that are attributable to the efficient or inefficient use of the cost driver, such as machine hours or direct labor hours. It does not measure changes in spending efficiency or the purchase of variable inputs. Therefore, choice C is the correct answer.

The Variable Overhead Efficiency Variance Claims to Measure