Managerial Accounting, v1.0: "Chapter 10, Section 5: Variable Manufacturing Overhead Variance Analysis"

Your final piece of the puzzle for Jerry’s Ice Cream is variable manufacturing overhead variance.  Variable manufacturing overhead variance has two distinct variances. When you calculate both variances, one is favorable and the other not.  The two variances are the spending variance and efficiency variance. The variable overhead spending variance is the difference between actual costs for variable overhead and budgeted costs based on the standards.