Suppose a Company's Variable Manufacturing Overhead Is Applied on the Basis

question 143

Multiple Choice

Suppose a company's variable manufacturing overhead is applied on the basis of direct labour hours,and the company has an unfavourable direct labour efficiency variance.Which of the following is most likely to result?

• 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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