Which of the following might cause a variable overhead efficiency variance?
A)using a poor quality material that needs more labour time to meet production standards
B)not taking a quantity discount
C)paying more than the standard rate for labour
D)increasing the pricing of the materials

Question

Quizplus · Accepted Answer

Variable overhead efficiency variance is caused by using more or less of the variable manufacturing overhead costs than what was expected for the actual level of production. Using a poor quality material that needs more labour time to meet production standards would increase the amount of time spent on manufacturing, leading to a larger variable overhead efficiency variance. Not taking a quantity discount, paying more than the standard rate for labour, or increasing the pricing of the materials would not directly impact variable overhead efficiency variance.

Which of the Following Might Cause a Variable Overhead Efficiency