The total overhead cost variance is the difference between what actual overhead cost is and what it should have cost according to the flexible budget for the good units produced.

Question

Quizplus · Accepted Answer

The total overhead cost variance is calculated as the difference between actual overhead costs and budgeted overhead costs for the actual level of activity. This budgeted amount is usually calculated using a flexible budget based on the output achieved during the period. Therefore, the statement is true.

The Total Overhead Cost Variance Is the Difference Between What