chapter 11 part iv Flashcards
1
Q
Which statement regarding variable overhead variance analysis is true?
The variable overhead efficiency variance uses exactly the same inputs as the direct labor efficiency variance.
Variable overhead variances are easy to interpret.
Efficient use of variable overhead results in a favorable variable overhead efficiency variance.
The variable overhead efficiency is calculated by multiplying the variance in the labor hours with the variable portion of the predetermined overhead rate.
A
The variable overhead efficiency is calculated by multiplying the variance in the labor hours with the variable portion of the predetermined overhead rate.
