The difference between variable overhead cost incurred and the total standard variable overhead cost allowed for the output of the period is called the:
A) Total variable overhead variance.
B) Variable factory overhead spending variance.
C) Variable factory overhead rate variance.
D) Variable factory overhead efficiency variance.
E) Variable factory overhead usage variance.

Question

The difference between variable overhead cost incurred and the total standard variable overhead cost allowed for the output of the period is called the: 
A) Total variable overhead variance.
B) Variable factory overhead spending variance.
C) Variable factory overhead rate variance.
D) Variable factory overhead efficiency variance.
E) Variable factory overhead usage variance.

Quizplus · Accepted Answer

The difference between the actual variable overhead costs incurred and the standard variable overhead costs allowed for the actual output of the period is known as the total variable overhead variance. This variance measures the overall efficiency and cost control of variable overheads during a period.

The Difference Between Variable Overhead Cost Incurred and the Total