Asked by khalil ibrahim on May 18, 2024

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The variable overhead efficiency variance does not actually measure how efficiently variable manufacturing overhead resources were used.

Variable Overhead Efficiency Variance

A measure of the efficiency with which variable overhead resources are utilized, calculated by comparing the actual usage against the budgeted or standard usage.

  • Acquire knowledge about the variable and fixed overhead efficiency variances and their impact on cost management strategies.
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Nicholas ShammaMay 22, 2024
Final Answer :
True
Explanation :
The variable overhead efficiency variance measures the efficiency of the use of the variable manufacturing overhead resources in relation to the actual number of units produced.