2003 7 Learning AC - Saved to this RC Layout References Malings Review View Help -14 AA AA EEEE 2.4 Abod Abc Aabbcc AabbCD 1 Abc Aalbcd Acco -A--A- - 9. 1 Normal YUH-2 YUHS YUO VSmall T No Spar Ron B u Body BUSI 2083 LEARNIN ACTIVITY UNIT 7 SUKHDEE Unit 7 FEXIBLE BUDGETING and VARIANCE ANAYSIS GOOD PRACTICE PROBLEMS FOR FINALEM NOT TO BE SUBMITTED OR GRADED Question 1 Total 20 marts When analyzing the total variable overhead cost variance into both spending and efficiency variances, it is often assumed that direct labour hours is the sole cost driver. Required: 1. Explain if direct labour costs could ever be a better cost driver of variable overhead costs than direct labour hours. 2. How is the standard variable overhead rate different from the standard labour rate in variance analysis? Please explain. 2003 7 Learning AC - Saved to this RC Layout References Malings Review View Help -14 AA AA EEEE 2.4 Abod Abc Aabbcc AabbCD 1 Abc Aalbcd Acco -A--A- - 9. 1 Normal YUH-2 YUHS YUO VSmall T No Spar Ron B u Body BUSI 2083 LEARNIN ACTIVITY UNIT 7 SUKHDEE Unit 7 FEXIBLE BUDGETING and VARIANCE ANAYSIS GOOD PRACTICE PROBLEMS FOR FINALEM NOT TO BE SUBMITTED OR GRADED Question 1 Total 20 marts When analyzing the total variable overhead cost variance into both spending and efficiency variances, it is often assumed that direct labour hours is the sole cost driver. Required: 1. Explain if direct labour costs could ever be a better cost driver of variable overhead costs than direct labour hours. 2. How is the standard variable overhead rate different from the standard labour rate in variance analysis? Please explain