If Ferg Company Has a $12,000 Unfavourable Variable-Overhead Efficiency Variance

question 129

Multiple Choice

If Ferg Company has a $12,000 unfavourable variable-overhead efficiency variance, which of the following statements would be true?

• A) Ferg would credit the Cost of Goods Sold account to write-off the variance.
• B) Ferg used the variable overhead components more effectively than expected.
• C) Ferg made efficient use of the cost driver.
• D) Ferg used the variable overhead components and cost driver as expected.
• E) Ferg did not use the cost driver efficiently.

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