The variable overhead efficiency variance is the difference between actual total overhead costs incurred and the total overhead costs applied using the standard overhead rates.

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Quizplus · Accepted Answer

The variable overhead efficiency variance measures the difference between the standard hours allowed for actual production and the actual hours worked, multiplied by the standard variable overhead rate. It does not compare actual total overhead costs to total overhead costs applied using standard rates.

The Variable Overhead Efficiency Variance Is the Difference Between Actual