Question: The efficiency variance measures the difference between the overhead applied standard hours at the standard rate and the actual hours worked times the standard rate

The efficiency variance measures the difference between the overhead applied standard hours at the standard rate and the actual hours worked times the standard rate It shows the effect on fixed and variable overhead costs when the actual hours worked are either more or less than the standard hours allowed for the level of production Unfavorable variances occur when more labor hours are worked than the standard allows. Please give us some information about the volume variance including how it is?

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