What will cause the variable-overhead efficiency variance?
A) Efficient or inefficient use of a specific component of variable overhead (e.g., electricity).
B) Full or partial utilization of major equipment resources.
C) Production of units in excess of the number of units sold.
D) Efficient or inefficient use of the cost driver (e.g., machine hours) for variable overhead.
E) Changes in the salary cost of manufacturing supervisors.

Question

Quizplus · Accepted Answer

The variable-overhead efficiency variance is caused by the efficient or inefficient use of the cost driver, such as machine hours, which affects the amount of variable overhead applied.

What Will Cause the Variable-Overhead Efficiency Variance