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
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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