In a three-variance method of factory overhead analysis, the variance that measures the difference between the factory overhead applied and the actual hours worked multiplied by the standard rate is the:

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The factory overhead efficiency variance in a three-variance method of factory overhead analysis is the difference between the factory overhead applied and the actual hours worked multiplied by the standard rate.
The budget or spending factory overhead variance is the difference between the actual overhead incurred and the budgeted overhead for the actual hours worked.
The capacity factory overhead variance is the difference between the budgeted overhead for the actual hours worked and the actual hours worked multiplied by the standard rate.

In a Three-Variance Method of Factory Overhead Analysis, the Variance