Which formula reflects the variable overhead efficiency variance?
A) (AH - SH) x SVOR
B) (AH - SH) x AVOR
C) (AVOR - SVOR) x SH
D) (AVOR × AH) - (SVOR × AH)

Question

Quizplus · Accepted Answer

The variable overhead efficiency variance measures the difference between the actual hours worked (AH) and the standard hours allowed for the actual output (SH), multiplied by the standard variable overhead rate (SVOR) per hour. Therefore, the formula (AH - SH) x SVOR reflects the variable overhead efficiency variance.

Which Formula Reflects the Variable Overhead Efficiency Variance