A variable overhead efficiency variance could be caused by
A)using a poor quality material that needs more labor time to meet production standards.
B)not taking a quantity discount.
C)paying more than the standard rate for labor.
D)price increases on the materials.

Question

Quizplus · Accepted Answer

Variable overhead efficiency variance measures the difference between the actual amount of overhead incurred and the amount of overhead that should have been incurred based on the actual level of output achieved. This variance could be caused by using a poor quality material that needs more labor time to meet production standards, as it would result in a higher amount of overhead being incurred than expected. The other choices are not directly related to the variable overhead efficiency variance.

A Variable Overhead Efficiency Variance Could Be Caused by