Efficient or inefficient use of a specific component of variable overhead (e.g. ,electricity)will cause the variable-overhead efficiency variance?

Question

Quizplus · Accepted Answer

The variable-overhead efficiency variance is calculated by comparing the actual amount of the variable component used to the amount that should have been used based on the actual level of output. Therefore, any inefficient use of the variable overhead component (such as electricity) will result in a variable-overhead efficiency variance as it will cause an increase in the actual cost of variable overhead compared to the expected cost.

Efficient or Inefficient Use of a Specific Component of Variable