ECONOMICS

Detailed explanation-1: -The difference between the actual overhead incurred during a period and the standard overhead applied. Overhead cost variance is composed of four variances, namely, the variable overhead rate variance, the variable overhead efficiency variance, the fixed overhead spending variance, and the volume variance.

Detailed explanation-2: -Overhead cost variance is: A. The difference between the overhead costs actually incurred and the overhead budgeted at the actual operating level.

Detailed explanation-3: -Variable overhead spending variance is the difference between actual variable overhead cost, which is based on the costs of indirect materials involved in manufacturing, and the budgeted costs called the standard variable overhead costs.

Detailed explanation-4: -Total overhead variance is the difference between actual overhead costs and overhead costs applied based on standard hours allowed.

Detailed explanation-5: -Overhead cost variance is the difference between the overhead actually incurred and the overhead budgeted at the operating level achieved.