How Is the Variable Overhead Rate Variance Calculated

question 83

Multiple Choice

How is the variable overhead rate variance calculated?

• A)The difference between the actual overhead rate and the standard overhead rate multiplied by the actual hours
• B)The difference between the actual overhead rate and the standard overhead rate multiplied by the standard hours allowed
• C)The difference between the standard hours allowed and the actual hours used multiplied by the standard overhead rate
• D)The difference between the standard hours allowed and the actual hours used multiplied by the actual overhead rate

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Definitions:

Sole Proprietorships

Businesses owned and operated by one individual; the most common form of business organization in the United States.