If a Company That Applies Variable Overhead on the Basis

question 172

Multiple Choice

If a company that applies variable overhead on the basis of direct labor hours records an unfavorable direct labor efficiency variance, the variable overhead efficiency variance will be

• A)unfavorable.
• B)favorable.
• C)zero.
• D)Undeterminable based on the given information.

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Definitions:

Reconceptualize

The process of redefining or reassessing an existing concept or idea, often in light of new evidence or perspectives.

Carrying Out

The act of executing or implementing a plan, decision, or instruction.

Action Identification Theory

The theory that explains how people conceive of action—their own or others’—in ways that range from very concrete to very abstract.

Concrete Descriptions

Detailed and specific account of objects, events, or situations, often allowing for more tangible understanding and communication.