An unfavorable variable overhead efficiency variance indicates that:
A)variable overhead items were not used efficiently
B)the price of variable overhead items was less than budgeted
C)the variable overhead cost-allocation base was not used efficiently
D)the denominator level was not accurately determined

Question

Quizplus · Accepted Answer

An unfavorable variable overhead efficiency variance suggests that the variable overhead cost-allocation base, such as machine hours or labor hours, was not used efficiently, leading to higher costs than anticipated.

An Unfavorable Variable Overhead Efficiency Variance Indicates That