Help Save & Exh Submit The part of the variable overhead budget variance due to the difference between actual variable overhead cost and the standard cost allowed for the actual inputs used is called the 1 Multiple Choice Os, variable overhead spending variance variable overhead budget variance variable overhead efficiency variance. variable overhead volume variance. When inventory valuation is based on an appropriately established and effective standard cost system: Multiple Choice cumulative variances are recognized. a significant unfavorable net variance may be reported as an expense of the current period. an insignificant favorable net variance may be reported as an expense of the current period O the explanatory notes to the financial statements will explain the disposition of the net variance