The total overhead budget variance is equal to the
A)sum of the total materials variance and the total labour variance.
B)difference between the total materials variance and the total labour variance.
C)difference between the actual overhead costs and the overhead costs applied to the work done.
D)total variance minus the spending variance and the volume variance.

Question

Quizplus · Accepted Answer

The total overhead budget variance is calculated as the difference between the actual overhead costs and the overhead costs applied to the work done. It does not involve the materials or labour variances, nor does it subtract spending or volume variances from the total variance.

The Total Overhead Budget Variance Is Equal to the