The difference between variable overhead incurred and total standard variable overhead for the output of the period is called the:
A)Variable factory overhead flexible-budget 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

Quizplus · Accepted Answer

The difference between the actual variable overhead incurred and the standard variable overhead allocated for the actual output is known as the variable factory overhead flexible-budget variance. This variance captures both the spending and efficiency variances.

The Difference Between Variable Overhead Incurred and Total Standard Variable