The total overhead cost variance is equal to the difference between
A)fixed overhead costs and variable overhead costs.
B)estimated overhead rate and applied overhead rate.
C)actual overhead costs and variable overhead costs.
D)actual overhead costs and standard overhead costs.

Question

Quizplus · Accepted Answer

The total overhead cost variance is the difference between actual overhead costs and standard overhead costs. This variance is used to analyze the effectiveness of a company's overhead cost allocation and control systems. The formula for total overhead cost variance is as follows:

Total Overhead Cost Variance = Actual Overhead Costs - Standard Overhead Costs.

The Total Overhead Cost Variance Is Equal to the Difference