If Variable Manufacturing Overhead Is Applied Based on Direct Labor-Hours

question 106

True/False

If variable manufacturing overhead is applied based on direct labor-hours, it is impossible to have a favorable labor rate variance and unfavorable variable overhead rate variance for the same period.

---

Definitions:

Health Insurance

A type of insurance coverage that pays for medical and surgical expenses incurred by the insured.

Semimonthly

Two times a month.

Spreadsheet Formula

A mathematical expression used in a spreadsheet program to perform calculations, analyze data, or automate tasks.

Yearly Pension

The annual amount paid to a retired employee, typically funded by previous contributions from the employer and/or the employee.