Question: When direct labor hours are used as a cost-allocation base, the item most likely to contribute to a favorable fixed overhead production volume variance is:

When direct labor hours are used as a cost-allocation base, the item most likely to contribute to a favorable fixed overhead production volume variance is:

Question 16 options:

a)

Producing more units than we planned

b)

workers wasting fixed overhead costs

c)

using more direct labor hours than budgeted

d)

producing fewer unit than we planned

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