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The overhead cost variance is calculated as: Multiple Choice
O Standard applied overhead less budgeted overhead.
O Actual overhead incurred less standard overhead applied
O Budgeted overhead less standard overhead applied.
O Actual overhead incurred less mandard applied overhead
O Actas feed cost less budgeted overhead

Respuesta :

The correct answer is  Standard applied overhead less budgeted overhead.

By deducting the standard overhead imposed from the actual overhead spent over the time, it is possible to compute the variation in overhead costs. The distinction between applied overhead and real overhead is referred to as overhead variance. Only until you are aware of the period's real overhead expenses can you calculate the overhead variance. A fixed rate and a cost driver are used to apply overhead. The difference between actual and budgeted overhead is the overhead controllable variance. Indirect expenses incurred throughout the production process include indirect materials, indirect labor, and other indirect costs. Overapplied (absorbed) overhead is added to cost of goods sold when applied overhead exceeds true overhead cost.

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