The variable overhead efficiency variance measures how well the business ________.
A) keeps costs of variable overhead inputs within standard
B) uses its variable overhead inputs
C) keeps fixed overhead within standard
D) explains why fixed overhead is under allocated or overallocated

Question

Quizplus · Accepted Answer

The variable overhead efficiency variance measures how well the business is using its variable overhead inputs. It compares the actual amount of variable overhead used to the expected or budgeted amount of variable overhead used in producing a product or providing a service.

The Variable Overhead Efficiency Variance Measures How Well the Business