The formula for calculating the variable overhead efficiency variance is
A) (AVOR × AH) − (SVOR × AH).
B) (AVOR − SVOR) × SH.
C) (AH − SH) × SVOR.
D) (AH − SH) × AVOR.
E) None of these.

Question

Quizplus · Accepted Answer

The variable overhead efficiency variance is calculated as the difference between the actual hours worked and the standard hours allowed for the actual production, multiplied by the standard variable overhead rate (SVOR). This measures how efficiently the variable overhead resources are used.

The Formula for Calculating the Variable Overhead Efficiency Variance Is