The difference between the actual amount of variable overhead incurred and the budget amount allowed for actual output achieved is

Question

Quizplus · Accepted Answer

The difference between actual variable overhead and the budget amount allowed for actual output achieved represents the flexible budget variance, which is a measure of the difference between actual and budgeted variable overhead costs due to changes in the actual level of output. The other options listed (B, C, D, E) are not applicable to this situation.

The Difference Between the Actual Amount of Variable Overhead Incurred