Which of the following is used to calculate total variable overhead variance where VOH = Variable Overhead, SVOR = Standard Variable Overhead Rate, SH = Standard Hour Allowed, and AH = Actual Direct Labor Hours Used?
A) Total VOH Variance = Standard VOH - SVOR × SH
B) Total VOH Variance = Fixed VOH - SVOR × AH
C) Total VOH Variance = Actual VOH - SVOR × SH
D) Total VOH Variance = Variable VOH - SVOR × AH
E) None of these

Question

Quizplus · Accepted Answer

Total VOH Variance can be calculated by subtracting the product of standardized hourly rate and standard hours allowed from actual variable overheads incurred. Therefore, Total VOH Variance = Actual VOH - SVOR x SH.

Which of the Following Is Used to Calculate Total Variable