Figure 1.2
Using the figure above, identify the labeled part.
-Label G: ______________________________
Definitions:
Variable Overhead Efficiency Variance
The difference between the actual variable overhead costs and the standard cost of variable overheads for the actual production units.
Direct Labor-Hours
The total time worked directly on the manufacturing of products.
Variable Overhead Rate Variance
The difference between the actual variable overhead incurred and the standard cost of variable overhead allocated to the production based on a predetermined rate.
Variable Overhead Efficiency Variance
Variable Overhead Efficiency Variance is the difference between the standard cost of variable overheads for the actual production and the actual variable overheads incurred, often attributed to efficiency in utilizing variable resources.