Question

LO 8.4The variable overhead efficiency variance is caused by the difference between which of the following?

actual and budgeted units
actual and standard allocation base
actual and standard overhead rates
actual units and actual overhead rates

Answer 1

actual and standard overhead rates

Step-by-step explanation:

The overhead efficiency variance is calculated by the following formula

Overhead efficiency variance=(Standard hours used to make the actual production*Standard cost per hour)-(Actual hours used to make the actual production*Standard cost per hour)

So based on the above discussion, the answer is actual and standard overhead rates.