The variable overhead efficiency variance = actual price × (actual labor hours - standard labor hours)

Name: The variable overhead efficiency variance = actual price × (actual labor hours - standard labor hours)
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The formula for variable overhead efficiency variance is actually calculated as follows: standard price × (actual labor hours - standard labor hours). The difference in the formula is that it uses the standard price instead of the actual price.

The Variable Overhead Efficiency Variance = Actual Price × (Actual