Question 1
The variable overhead efficiency variance is the difference between actual quantity of the
cost-allocation base used and budgeted quantity of the cost-allocation base allowed for actual output, multiplied by the budgeted variable overhead cost per unit of the cost-allocation base.
◦ true
◦ false
Question 2
Tightly budgeted machine time standards can lead to unfavorable variable overhead efficiency variance.
◦ true
◦ false