Answer:
Step-by-step explanation:
In costing analysis, direct materials, labour and direct expenses aggregate to prime cost. Alternately, the aggregate of indirect materials, labour and expenses is termed as overhead. Overheads are classified into fixed and variable.
Variable overhead is one which varies directly as per number of units produced
Variable overhead rate variance = actual costs -(AHxSR)
= Actual costs - (Actual hours x std rate)
= Actual hours x actual rate - actual hours x std rate
Hence option D is right.
