Multiple Choice
If variable manufacturing overhead is applied on the basis of direct labour-hours and the variable overhead spending variance is favourable, then the
A) actual variable manufacturing overhead rate exceeded the standard rate.
B) standard variable manufacturing overhead rate exceeded the actual rate.
C) actual direct labour-hours exceeded the standard direct labour-hours allowed for the actual output.
D) standard direct labour-hours allowed for the actual output exceeded the actual hours.
Correct Answer:
Verified
Correct Answer:
Verified
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