Variable overhead efficiency variances are unfavorable when actual cost driver activity exceeds the ________.
A)activity allowed for the actual output
B)activity allowed for the expected output
C)activity allowed for the planned output
D)activity allowed for last period's output

Question

Quizplus · Accepted Answer

The variable overhead efficiency variance is unfavorable when the actual cost driver activity is greater than the activity allowed for the actual output, indicating inefficiency.

Variable Overhead Efficiency Variances Are Unfavorable When Actual Cost Driver