Question 1
The variable overhead efficiency variance is computed ________ and interpreted ________ the direct-cost efficiency variance.
◦ the same as; the same as
◦ the same as; differently than
◦ differently than; the same as
◦ differently than; differently than
Question 2
The variable overhead efficiency variance measures the difference between the ________, multiplied by the budgeted variable overhead cost per unit of the cost-allocation base.
◦ budgeted quantity of the cost-allocation base used and the budgeted quantity of the cost-allocation base that should have been used to produce the actual output
◦ actual quantity of the cost-allocation base used and the budgeted quantity of the cost-allocation base that should have been used to produce the actual output
◦ actual cost incurred and the budgeted quantity of the cost-allocation base that should have been used to produce the actual output
◦ budgeted cost and the actual cost used to produce the actual output
Production efficiency.
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