Because the calculation of both variances is based on direct labor hours, an unfavorable labor efficiency variance
Question:
Because the calculation of both variances is based on direct labor hours, an unfavorable labor efficiency variance implies that
a. the variable overhead efficiency variance will also be unfavorable.
b. the variable overhead efficiency variance will be favorable.
c. there will be no variable overhead efficiency variance.
d. the variable overhead spending variance will be unfavorable.
e. the variable overhead is overapplied.
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The correct answer is d the variable overhead spending variance will be unfavorable An unfavorable l...View the full answer
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Related Book For 
Cornerstones of Managerial Accounting
ISBN: 978-0324660135
3rd Edition
Authors: Mowen, Hansen, Heitger
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