An overhead cost variance is the difference between the actual overhead incurred for the period and the standard overhead applied.

An overhead cost variance is calculated by subtracting the actual overhead cost from the standard overhead cost. If the actual overhead cost is lower than the standard overhead cost, it results in a favorable overhead cost variance, and if the actual overhead cost is higher than the standard overhead cost, it results in an unfavorable overhead cost variance. Therefore, the statement that an overhead cost variance is the difference between the actual overhead incurred for the period and the standard overhead applied is true.