Question: 1. Our workers are all under labor contracts; therefore, our labor rate variance is bound to be zero. Discuss. 2. If variable manufacturing overhead is
1. Our workers are all under labor contracts; therefore, our labor rate variance is bound to be zero. Discuss.
2. If variable manufacturing overhead is applied to production on the basis of direct labor-hours and the direct labor efficiency variance is unfavorable, will the variable overhead efficiency variance be favorable or unfavorable, or could it be either? Explain.
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