The overhead variance is equal to the difference between
A) fixed overhead costs and flexible overhead costs.
B) estimated overhead rate and applied overhead rate.
C) actual overhead costs and variable overhead costs.
D) actual overhead costs and standard overhead costs.

Question

Quizplus · Accepted Answer

The overhead variance measures the difference between actual overhead costs and the standard overhead costs. Therefore, option D, actual overhead costs and standard overhead costs, is the correct choice. Options A, B, and C do not accurately describe the overhead variance.

The Overhead Variance Is Equal to the Difference Between