Waste or excessive usage of overhead items will show up as part of the variable overhead efficiency variance

Question

Quizplus · Accepted Answer

Variable overhead efficiency variance is concerned with the efficiency in using the variable overhead resources, typically related to direct labor hours or machine hours, not the waste or excessive usage of overhead items. Waste or excessive usage would more directly impact the variable overhead spending variance, not the efficiency variance.

Waste or Excessive Usage of Overhead Items Will Show Up