The total overhead variance is the difference between the the actual overhead costs and the standard direct labor costs. actual overhead costs and overhead costs applied based on standard hours allowed. actual overhead costs and overhead costs applied based on actual hours. overhead costs applied based on actual hours and overhead costs applied based on standard hours allowed.

Question

﻿  The total overhead variance is the difference between the the actual overhead costs and the standard direct labor costs. actual overhead costs and overhead costs applied based on standard hours allowed. actual overhead costs and overhead costs applied based on actual hours. overhead costs applied based on actual hours and overhead costs applied based on standard hours allowed.

Anu Bhardwaj · Accepted Answer

"The total overhead variance is the difference between the..."

The correct answer is:

(b) actual overhead costs and overhead costs applied based on standard hours allowed.

Explanation:

Overhead variance compares what was spent (actual overhead) with what should have been applied to production (applied overhead based on standard hours allowed).
This shows whether the company over- or under-applied overhead.

✅ Correct: Actual overhead costs – Applied overhead (based on standard hours allowed).

Accounting

Accounting

Anu Bhardwaj

Answer

Extracted Transcript from Images