What Will Cause the Variable-Overhead Efficiency Variance

question 53

Multiple Choice

What will cause the variable-overhead efficiency variance?

• A) Efficient or inefficient use of a specific component of variable overhead (e.g., electricity).
• B) Full or partial utilization of major equipment resources.
• C) Production of units in excess of the number of units sold.
• D) Efficient or inefficient use of the cost driver (e.g., machine hours) for variable overhead.
• E) Changes in the salary cost of manufacturing supervisors.

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