If Variable Overhead Is Applied Based on Direct Labour Hours

question 4

Multiple Choice

If variable overhead is applied based on direct labour hours and there is an unfavourable labour efficiency variance,

• A)the materials usage variance will be unfavourable.
• B)the labour rate variance will be favourable.
• C)the variable overhead efficiency variance will be unfavourable.
• D)the variable overhead spending variance will be unfavourable.

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Reorganization

The process of restructuring the operations, policies, or structure of an organization to improve efficiency or adapt to new conditions.

Competitive Strategy

A long-term plan of action designed to achieve a competitive advantage over rivals in the industry.

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Items or services that have been recently introduced to the market, offering new or enhanced features compared to existing offerings.

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