The variable overhead flexible-budget variance can be further subdivided into the
A)price variance and the efficiency variance.
B)static-budget variance and sales-volume variance.
C)rate variance and production-volume variance.
D)sales-volume variance and the rate variance.
E)rate variance and the efficiency variance.

Question

Quizplus · Accepted Answer

The variable overhead flexible-budget variance is divided into the rate variance, which measures the difference between actual and budgeted rates, and the efficiency variance, which measures the efficiency in using the variable overhead resources.

The Variable Overhead Flexible-Budget Variance Can Be Further Subdivided into the