For overhead variances, the difference between the flexible budget amounts and actual costs incurred is called the
A) Efficiency variance
B) Budget variance
C) Favorable variance
D) Quantity variance

Question

Quizplus · Accepted Answer

The difference between the flexible budget and actual overhead costs incurred is called the budget variance. This variance shows how well the company was able to stick to its original budgeted amounts for overhead costs.

For Overhead Variances, the Difference Between the Flexible Budget Amounts