Question: For company, direct labor-hours are considered the allocation base for applying variable manufacturing overhead costs. Last month, the labor efficiency variance was unfavorable. Based on
For company, direct labor-hours are considered the allocation base for applying variable manufacturing overhead costs. Last month, the labor efficiency variance was unfavorable. Based on this information, one can assume:
A) the direct materials quantity variance was unfavorable.
B) None of the above.
C) the variable overhead rate variance was unfavorable.
D) the variable overhead efficiency variance was favorable.
E) the variable overhead efficiency variance was unfavorable.
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