When Machine-Hours Are Used as an Overhead Cost-Allocation Base, the LEAST

question 57

Multiple Choice

When machine-hours are used as an overhead cost-allocation base, the LEAST likely cause of a unfavourable variable overhead rate variance is

• A)excessive machine breakdowns.
• B)the production scheduler inefficiently scheduled jobs.
• C)poor coordination between sales and production resulting in displacement of normal batches by.rush orders and excessive setup times.
• D)strengthened demand for the product.
• E)a decrease in the cost of energy.

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