When machine-hours are used as an overhead cost-allocation base and annual leasing costs for equipment unexpectedly increase, the most likely result would be to report a(n) ________.

	a.	unfavourable variable overhead spending variance
	b.	favourable variable overhead efficiency variance
	c.	unfavourable fixed overhead flexible-budget variance
	d.	favourable production-volume variance
	e.	None of the answers.

Answer rating: 100% (QA)

Answer Correct Answer Option 3 Unfavourable Fixed Ov... View the full answer