If Overhead Is Applied to Production Using Direct Labor Hours

question 20

Multiple Choice

If overhead is applied to production using direct labor hours and the direct labor efficiency variance is favorable, then the variable overhead efficiency variance is:

• A) favorable.
• B) unfavorable.
• C) either favorable or unfavorable.
• D) neither favorable nor unfavorable.

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Definitions:

Memory Failure

The inability to recall or recognize previously learned information or past experiences.

Source Amnesia

The inability to remember where, when, or how one has obtained knowledge, although the fact or idea is retained.

Proactive Interference

The phenomenon where old information inhibits the ability to remember new information.

Frequent Toothbrushing

The act of brushing teeth more often than usual, typically recommended to improve dental health and prevent oral diseases.