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:

Implicit Leadership Theory

The concept that people have ingrained beliefs and assumptions about the traits, behaviors, and qualities that characterize effective leaders.

Transformational Leadership Theory

A leadership approach highlighting the importance of inspiring and empowering followers to achieve extraordinary outcomes through visionary leadership.

GLOBE

An acronym for Global Leadership and Organizational Behavior Effectiveness, a research program studying cross-cultural leadership behaviors.

Self-Protective Leadership

A leadership style focused on ensuring the safety, security, and welfare of the leader and the group, often prioritizing risk avoidance and security measures.