Q. The formula for calculating the variable overhead total variance is: (Solved)

1. (Standard hours less actual hours) x variable overhead absorption rate

2. Actual variable overhead less (actual hours x actual hours worked x variable overhead absorption rate)

3. Actual variable overhead expenditure less budgeted variable overhead expenditure

4. Actual variable overhead less (standard hours x actual production x variable overhead absorption rate)

  • b. Actual variable overhead less (actual hours x actual hours worked x variable overhead absorption rate)
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