Question

The part of the variable overhead budget variance due to the difference between actual variable overhead cost and the standard cost allowed for the actual inputs used is called the:

Answer 1

variable expenditure variance

Step-by-step explanation:

The variable expenditure variance is the difference between actual variable overhead cost and the standard cost allowed for the actual inputs used.

An adverse variance results when actual overheads exceeds the standard cost for actual input used for example labor hours.

A favorable variance results when the standard cost for actual input used exceeds the actual overheads.