Variable overhead price variance can be expressed as:
A) Actual quantity x (actual price + standard price)
B) Actual price x ( actual price - standard price)
C) Actual quantity x (actual price - standard price)
D) Standard price x ( actual quantity - standard quantity)

Question

Quizplus · Accepted Answer

Variable overhead price variance measures the difference between the actual price paid for variable overhead expenses and the standard price expected. It is calculated by multiplying the actual quantity of variable overhead incurred by the difference between the actual price and the standard price. Therefore, the correct formula is actual quantity x (actual price - standard price), which is choice C.

Variable Overhead Price Variance Can Be Expressed As