The overhead cost variance is calculated as:

A) Standard applied overhead less budgeted overhead.
B) Actual overhead incurred less standard overhead applied.
C) Budgeted overhead less standard overhead applied.
D) Actual overhead incurred less standard applied overhead.
E) Actual fixed cost less budgeted overhead.

Overhead Cost Variance

The difference between the actual overhead costs incurred and the standard overhead costs expected for a certain level of operation.

Standard Overhead Applied

Standard overhead applied refers to the allocation of estimated overhead costs to individual products or services based on a predetermined rate.