Assume that machine hours is the cost driver for overhead. The difference between the actual variable overhead incurred and the applied variable overhead is the:
A) volume variance.
B) production variance.
C) efficiency variance.
D) sum of the spending and efficiency variances.
E) spending variance.

Question

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The Answer of Assume that machine hours is the cost driver for overhead. The difference between the actual variable overhead incurred and the applied variable overhead is the:
A) volume variance.
B) production variance.
C) efficiency variance.
D) sum of the spending and efficiency variances.
E) spending variance.

Assume That Machine Hours Is the Cost Driver for Overhead