Assume the number of machine hours is the cost driver for variable overhead. The difference between the actual variable overhead and the flexible budget for variable overhead (based on standard machine hours allowed for actual output) is the
A) volume variance.
B) net overhead variance.
C) efficiency variance.
D) sum of variable spending and efficiency variances.

Question

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The Answer of Assume the number of machine hours is the cost driver for variable overhead. The difference between the actual variable overhead and the flexible budget for variable overhead (based on standard machine hours allowed for actual output) is the
A) volume variance.
B) net overhead variance.
C) efficiency variance.
D) sum of variable spending and efficiency variances.

Assume the Number of Machine Hours Is the Cost Driver