When Direct Labor Is the Best Cost Driver for Variable

question 93

Multiple Choice

When direct labor is the best cost driver for variable manufacturing overhead, a favorable direct labor efficiency variance would result in:

• A) A favorable variable manufacturing overhead efficiency variance
• B) An unfavorable variable manufacturing overhead efficiency variance
• C) An unfavorable variable manufacturing overhead efficiency variance and an unfavorable total variable manufacturing overhead variance
• D) The answer cannot be determined

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Definitions:

Rules

Explicit or implicit principles or guidelines that govern behavior in various contexts and systems.

Regulations

Rules or directives made and maintained by an authority to control or govern behavior, often within a specific industry or activity.

Preconventional

The first level in Kohlberg's stages of moral development, where moral reasoning is based primarily on perceived consequences of actions and obedience to authority.

Level

A specific height or degree of advancement or progress in a sequence or hierarchy.