When Variable Overhead Efficiency Variance Is Favorable, It Can Be

question 45

Multiple Choice

When variable overhead efficiency variance is favorable, it can be safely assumed that the ________.

• A) actual rate per unit of the cost-allocation base is higher than the budgeted rate
• B) actual quantity of the cost-allocation base used is higher than the budgeted quantity
• C) actual rate per unit of the cost-allocation base is lower than the budgeted rate
• D) actual quantity of the cost-allocation base used is lower than the budgeted quantity

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Definitions:

Origami

The traditional Japanese art or technique of folding paper into a variety of decorative or representational forms.

Folds

Folds are bends or creases in a material made by doubling it over itself or by compressing.

Effects

Outcomes or results that are caused by some preceding action or cause.

Managable

Capable of being controlled, handled, or dealt with easily.