The variable overhead efficiency variance is also called the variable overhead spending variance.

Question

Quizplus · Accepted Answer

The variable overhead efficiency variance measures the difference between the actual hours worked and the standard hours allowed for the actual output, while the variable overhead spending variance measures the difference between the actual variable overhead cost incurred and the budgeted amount of variable overhead for the actual output. These are two separate variance concepts with different purposes.

The Variable Overhead Efficiency Variance Is Also Called the Variable