A Favourable Variable Manufacturing Overhead Efficiency Variance May Be Interpreted

question 52

Multiple Choice

A favourable variable manufacturing overhead efficiency variance may be interpreted as meaning which of the following if machine hours are the cost allocation base?

• A)Employees used too much electricity during production.
• B)Improved quality of materials resulting in less downtime to clean the machines of debris.
• C)Excess supplies were used.
• D)Too much of the cost driver was used.
• E)The cost driver is inappropriate.

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