What Does the Variable Overhead Efficiency Variance Claim to Measure

question 1

Multiple Choice

What does the variable overhead efficiency variance claim to measure?

• A)changes in spending efficiency because the company paid too much for direct labour
• B)changes in productive efficiency caused by the overuse of producing assets
• C)changes in variable overhead costs because of the efficient (inefficient) use of direct labour
• D)changes in variable overhead costs attributable to inefficient purchase of variable inputs

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