Question

The variable overhead efficiency variance measures the difference between the ________, multiplied by the budgeted variable overhead cost per unit of the cost-allocation base. budgeted quantity of the cost-allocation base used and the budgeted quantity of the cost-allocation base that should have been used to produce the actual output budgeted cost and the actual cost used to produce the actual output actual cost incurred and the budgeted quantity of the cost-allocation base that should have been used to produce the actual output actual quantity of the cost-allocation base used and the budgeted quantity of the cost-allocation base that should have been used to produce the actual output

Answer 1

actual quantity of the cost-allocation base used and the budgeted quantity of the cost-allocation base that should have been used to produce the actual output

Step-by-step explanation:

The formula to calculate the variable overhead efficiency variance is shown below:

= (Standard quantity - actual quantity) ÷ budgeted variable overhead cost per unit

In the case when the standard quantity is more than the actual one so it is favorable else unfavorable

Therefore the last option is correct

And, the other options are wrong