In a four-variance method analyzing factory overhead,the variable factory overhead efficiency variance measures:

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The variable factory overhead efficiency variance measures the difference between the actual hours incurred and the standard hours allowed for a given level of production. This variance reflects the efficiency of the workers in using variable factory overhead resources, such as electricity or supplies. It is calculated by multiplying the standard hours allowed by the difference between the actual variable factory overhead rate and the standard variable factory overhead rate.

In a Four-Variance Method Analyzing Factory Overhead,the Variable Factory Overhead