The total variable overhead variance is the difference between
A) the actual overhead and the budgeted overhead.
B) the total actual variable overhead and the total budgeted variable overhead.
C) the total actual variable overhead and the total applied variable overhead.
D) the total actual variable overhead and the total applied overhead.
E) None of these.

Question

Quizplus · Accepted Answer

The total variable overhead variance measures the difference between the total actual variable overhead and the total applied variable overhead. Option A refers to the variable overhead spending variance, not the total variable overhead variance. Option B refers to the total variable overhead cost, not the variance. Option D is incorrect as it suggests that fixed overhead is included in the calculation, which is not the case for the total variable overhead variance. Option E is incorrect as one of the other options must be correct.

The Total Variable Overhead Variance Is the Difference Between