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} - {^ (1) Variable Overhead Cost Variance: This is the difference between standard variable overhead for actual production and the actual variable overhead incurred. The formula is as follows: Standard Variable Overhead Variable Overhead Cost Variance = Actual Variable For Actual Output Overheads (2) Variable Overhead Expenditure Variance: It is the difference between standard variable overheads allowed for actual hours worked and the actual variable overhead incurred. This variable may be calculated as follows: Variable Overhead Standard Variable Overhead Actual Variable Actual Overheads Rate Expenditure Variance) Rate Per our per hour Time (or) Standard Variable Actual Variable Overheads Overheads a { font] p7 616 A Textbook of Financial Cost and Management Accounting (3) Variable Overhead Efficiency Variance: This variance arises due to the difference between variable overhead recovered from actual output produced and the standard variable overhead for actual hours worked. The formula is a follows: Variable Overhead Standard Rate Standard Hours Actual Efficiency Variance Per Hour for Actual Production Hours Verification : Variable Overhead Variable Overhead Variable Efficiency Cost Variance Expenditure Variance Variance or =