The variance that measures the amount of variable overhead that should have been saved (or incurred) because of the efficient (or inefficient) use of the measurement base is the:
A) Variable overhead spending variance
B) Variable overhead efficiency variance
C) Fixed overhead budget variance
D) Fixed overhead volume variance

Question

Quizplus · Accepted Answer

The overhead efficiency variance is not a measure of the efficiency of use of the various overhead components, but rather a measure of the efficiency of use of the overhead activity base.

The Variance That Measures the Amount of Variable Overhead That