An unfavourable variable overhead rate variance indicates that
A)variable overhead items were used efficiently.
B)the price and/or use of variable overhead items was more than budgeted.
C)the variable overhead cost-allocation base was not used efficiently.
D)the denominator level was not accurately determined.
E)the denominator level was used more than planned.

Question

Quizplus · Accepted Answer

An unfavourable variable overhead rate variance indicates that the price and/or use of variable overhead items was more than budgeted. This means that actual expenses were higher than expected, leading to an unfavorable variance.

An Unfavourable Variable Overhead Rate Variance Indicates That