"The variable-overhead efficiency variance is not really an overhead variance." Evaluate this statement. Question content area bottom.

A. The variable overhead efficiency variance does not directly measure the performance of the managers who are responsible foroverhead, but rather the performance of managers who control the sales level. The variable overhead efficiency variance indicates whether the standard level of sales was more or less than the actual sales.

B. The variable overhead efficiency variance does not directly measure the performance of the managers who are responsible foroverhead, but rather the performance of managers who control the fixed costs. The variable overhead efficiency variance indicates whether the actual fixed costs are more or less than the standard fixed costs.

C. The variable overhead efficiency variance directly measures the performance of the managers who are responsible for overhead. These managers control the overhead spending and therefore are in control of all overhead costs.

D. The variable overhead efficiency variance does not directly measure the performance of the managers who are responsible foroverhead, but rather the performance of managers who control the cost driver for overhead. The variable overhead efficiency variance indicates whether actual use of the cost driver was more or less than the standard amount of the driver for the output achieved.

Answer rating: 100% (QA)

Answer The VariableOverhead Efficiency Variance is not really an Overhead Variance The Statement dep... View the full answer