When analyzing the total variable overhead cost variance into both spending and efficiency variances, it is often
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Question:
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:
Explain
1) 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? Explain.
Expert Answer:
a Direct labor cost can be a better cost driver than direct labor hour For example in a manufacturin... View the full answer
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