The total overhead variance is the difference between:
A)Budgeted overhead and applied overhead.
B)Actual overhead and budgeted overhead.
C)Actual overhead and applied overhead.
D)Applied overhead and budgeted overhead.

Question

Quizplus · Accepted Answer

The total overhead variance is the difference between the actual overhead costs incurred and the overhead costs that were applied to production. It measures the overall efficiency of the overhead cost allocation process. Option A and D relate to individual variances, while option B refers to the overhead spending variance. Therefore, option C is the correct choice.

The Total Overhead Variance Is the Difference Between