The efficiency variance computed on a three-variance approach is
A)equal to the efficiency variance computed on the four-variance approach.
B)equal to the variable overhead spending variance plus the efficiency variance computed on the four-variance approach.
C)computed as the difference between applied variable overhead and actual variable overhead.
D)computed as actual variable overhead minus the flexible budget for variable overhead based on actual hours worked.

Question

Quizplus · Accepted Answer

In both the three-variance and four-variance approaches, the efficiency variance measures the difference between the actual input used and the standard input allowed for the actual output, valued at the standard rate.

The Efficiency Variance Computed on a Three-Variance Approach Is