General Account Variable manufacturing overhead is applied to products on the basis ofstandard direct labor-hours. If the labor efficiency variance isunfavorable, what will the variable overhead efficiency variance be?A. Either favorable or unfavorableB. FavorableC. UnfavorableD. Zero

The correct answer is:C. Unfavorable ExplanationVariable manufacturing overhead is applied based on…

Answered: Variable manufacturing overhead is…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 17MC: When is the direct labor time variance unfavorable? A. when the actual quantity used is greater than...

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Similar questions

When is the direct labor time variance favorable? A. when the actual quantity used is greater than the standard quantity B. when the actual quantity used is less than the standard quantity C. when the actual price paid is greater than the standard price D. when the actual price is less than the standard price
Identity several causes of an unfavorable labor rate variance.
The overhead variance is overapplied if a. actual overhead is less than applied overhead. b. actual overhead is more than applied overhead. c. applied overhead is less than actual overhead. d. estimated overhead is less than applied overhead. e. estimated overhead is more than applied overhead.
When is the labor rate variance unfavorable? A. when the actual quantity used is greater than the standard quantity B. when the actual quantity used is less than the standard quantity C. when the actual price paid is greater than the standard price D. when the actual price is less than the standard price
The variable overhead efficiency variance is caused by the difference between which of the following? A. actual and budgeted units B. actual and standard allocation base C. actual and standard overhead rates D. actual units and actual overhead rates
The variable overhead rate variance is caused by the sum between which of the following? A. actual and standard allocation base B. actual and standard overhead rates C. actual and budgeted units D. actual units and actual overhead rates
What are some possible reasons for a labor rate variance? A. hiring of less qualified workers B. an excess of material usage C. material price increase D. utilities usage change
What are some possible reasons for a material price variance? A. substandard material B. labor rate increases C. labor rate decreases D. labor efficiency
What are some reasons for a material quantity variance? A. building rental charges increase B. labor rate decreases C. more qualified workers D. labor efficiency increases
Identify several causes of a favorable labor rate variance.
Variable manufacturing overhead is applied to products on the basis of standard direct labor-hours. If the labor efficiency variance is unfavorable, what will the variable overhead efficiency variance be? A. Either favorable or unfavorable B. Favorable C. Unfavorable D. Zero
If variable manufacturing overhead is applied to production on the basis of direct laborhours and the direct labor efficiency variance is unfavorable, will the variable overhead efficiency variance be favorable or unfavorable, or could it be either? Explain.

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Variable manufacturing overhead is applied to products on the basis of standard direct labor-hours. If the labor efficiency variance is unfavorable, what will the variable overhead efficiency variance be? A. Either favorable or unfavorable B. Favorable C. Unfavorable D. Zero