In a three-variance method of factory overhead analysis,the variance that measures the difference between the factory overhead applied and the actual hours worked multiplied by the standard rate is the:

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The variance that measures the difference between the factory overhead applied and the actual hours worked multiplied by the standard rate is the efficiency variance. This variance measures the efficiency of the workers in using factory overhead during production. The production-volume variance measures the impact of changes in production volume on the factory overhead costs, the quantity variance measures the difference between the actual quantity of material used and the standard quantity allowed for the goods produced, and the spending variance measures the difference between actual overhead costs and budgeted overhead costs.

In a Three-Variance Method of Factory Overhead Analysis,the Variance That