What Will the Result Be If Variable Manufacturing Overhead Is

question 2

Multiple Choice

What will the result be if variable manufacturing overhead is applied based on direct labour hours and there is an unfavourable direct labour efficiency variance?

• A)The direct materials usage variance will be unfavourable.
• B)The direct labour rate variance will be favourable.
• C)The variable manufacturing overhead efficiency variance will be unfavourable.
• D)The variable manufacturing overhead spending variance will be unfavourable.

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Definitions:

Underlying Asset's Price

The current market price of the security or commodity that is the basis for a derivative contract, such as options or futures.

Option

A financial derivative that gives the buyer the right, but not the obligation, to buy or sell an asset at a specified price on or before a certain date.

Money

A medium of exchange, unit of account, and store of value that facilitates transactions and measures the value of goods and services.

Worthless

Describes an item that has no value, utility, or financial gain.