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The variable overhead efficiency variance measures Select one: A. the degree to which variable overhead has varied over a period of time. B. the degree of efficiency in using variable overhead items such as indirect materials. C. the overall effectiveness of the production supervisor's performance. D. the amount of variable overhead that should have been saved or incurred due to the efficient or inefficient use of the activity base.

Sagot :

Answer: D. the amount of variable overhead that should have been saved or incurred due to the efficient or inefficient use of the activity base.

Explanation:

The variable overhead efficiency variance simply means the difference that exists between the true time which it takes for the production of a particular product and the time that's budgeted for the production of the product and the effect of the difference.

It should be noted that the variable overhead efficiency variance simply measures the amount of the variable overhead which should have been saved or incurred due to the efficient or inefficient use of the activity base.

Therefore, the correct option is D.

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