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
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. Submission Instructions: 1. Explain if direct labour costs could ever be a better cost driver of variable overhead costs than direct labour hours. 2. How would ABC system affect the overhead variances?
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