What is the correct formula for the variable overhead expenditure variance?
A) The total cost of variable overheads for actual production compared to the standard cost of variable overheads for actual production.
B) (Expected direct labour or machine hours for actual production - actual direct labour or machine hours for actual production) x the standard cost for one hour of variable overhead.
C) What the actual direct labour or machine hours for actual production should have cost - what the actual direct labour or machine hours for actual production actually cost.
D) What the direct labour or machine hours for expected production should have cost - what the direct labour or machine hours for actual production actually cost.

Question

Quizplus · Accepted Answer

The Answer of What is the correct formula for the variable overhead expenditure variance?
A) The total cost of variable overheads for actual production compared to the standard cost of variable overheads for actual production.
B) (Expected direct labour or machine hours for actual production - actual direct labour or machine hours for actual production) x the standard cost for one hour of variable overhead.
C) What the actual direct labour or machine hours for actual production should have cost - what the actual direct labour or machine hours for actual production actually cost.
D) What the direct labour or machine hours for expected production should have cost - what the direct labour or machine hours for actual production actually cost.

What Is the Correct Formula for the Variable Overhead Expenditure