The variable overhead efficiency variance measures the difference between the actual level of activity and the standard activity allowed for the actual output, multiplied by the variable part of the predetermined overhead rate. a. True
b. False

True

Explanation:

From the question, we are informed that the variable overhead efficiency variance measures the difference between the actual level of activity and the standard activity allowed for the actual output, multiplied by the variable part of the predetermined overhead rate. This is true.

The variable overhead efficiency variance is numerically written as:

= (actual labor hours - budgeted labor hours) x standard variable overhead hourly rate.

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