The variable overhead ______ variance measures the difference between the actual variable overhead cost and the projected budget for variable overhead cost.

Sagot :

Variable overhead rate variance.

What is variable overhead rate variance?

  • The difference between the actual variable manufacturing overhead and the variable overhead that was anticipated given the number of hours worked is the variable overhead rate variance, sometimes referred to as the spending variation.

What is an actual variable overhead cost?

  • Spending on Variable Overhead Variance is the difference between the actual cost of variable production overheads and the expected cost given the amount of activity over a certain time period.
  • Typically, the standard variable overhead rate is represented in terms of labor or machine hours.

What is budgeted variable overhead?

  • It is the relationship between the budgeted expenses as determined by a company's cost accountants and the actual costs.
  • Variable overheads are the names given to the budgeted costs.
  • Basically, variable overhead spending variation is the portion of a company's operating expenses that varies in response to changes in operational activity.

Therefore, the correct answer is variable overhead rate variance.

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