Which of the following is true of total variable overhead variance? a.It can be divided into spending and rate variances. b.It shows only the effect of differences in the prices of overhead variances. c.It always depends on the actual hours used. d.It is the difference between actual and applied variable overheads.

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bunnyscott1979 bunnyscott1979

24-03-2022
Business

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Which of the following is true of total variable overhead variance? a.It can be divided into spending and rate variances. b.It shows only the effect of differences in the prices of overhead variances. c.It always depends on the actual hours used. d.It is the difference between actual and applied variable overheads.

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jayilych4real jayilych4real · Answer 1 · 2022-04-07T09:21:46+02:00

The answer choice which shows the true statement about total variable overhead variance is b. It shows only the effect of differences in the prices of overhead variances.

What is Variance?

This refers to the average squared deviations from the mean of a distribution.

With this in mind, we can state that the total variable overhead variance has to do with the difference in the price of prices of the overhead variances which are the surplus.

Read more about total variable overhead variance here:

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