Asked by Megan Shook on Jul 28, 2024
Verified
The variable overhead efficiency variance measures the difference between the actual level of activity and the standard activity allowed for the actual output, multiplied by the fixed part of the predetermined overhead rate.
Variable Overhead Efficiency Variance
The difference between the actual variable overhead based on the efficient use of resources and the standard variable overhead expected.
- Gain insight into how variable and fixed overhead efficiency variances influence cost management practices.
Verified Answer
CE
Cire Ekcyquel GamboaJul 28, 2024
Final Answer :
False
Explanation :
The variable overhead efficiency variance measures the difference between the actual level of activity and the standard activity allowed for the actual output, multiplied by the variable part of the predetermined overhead rate, not the fixed part.
Learning Objectives
- Gain insight into how variable and fixed overhead efficiency variances influence cost management practices.
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