The variable overhead efficiency variance is favourable if the actual volume of the allocation base is less than expected given actual production levels.
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Q69: Actual overhead costs are allocated to inventory
Q70: Usually companies produce more or less than
Q71: The variable overhead spending variance focuses on
Q72: The dollar amount of the production volume
Q73: The difference between the standard amount of
Q75: The fixed overhead spending variance is favourable
Q76: The production volume variance is equivalent to
Q77: If actual volumes of the allocation base
Q78: Fixed overheard variances are closed to spending
Q79: Variable overhead variances are closed to spending
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