How is the variable overhead rate variance calculated?
A)The difference between the actual overhead rate and the standard overhead rate multiplied by the actual hours
B)The difference between the actual overhead rate and the standard overhead rate multiplied by the standard hours allowed
C)The difference between the standard hours allowed and the actual hours used multiplied by the standard overhead rate
D)The difference between the standard hours allowed and the actual hours used multiplied by the actual overhead rate

Question

Quizplus · Accepted Answer

The variable overhead rate variance is calculated by taking the difference between the actual overhead rate and the standard overhead rate, then multiplying by the actual hours worked.

How Is the Variable Overhead Rate Variance Calculated