Which of the following is a TRUE statement about the variable overhead efficiency variance when the allocation base is direct labor hours? O It will report a favorable variance if the direct labor efficiency variance is found favorable. O Part of information used to calculate it can also be used to determine the direct labor rate variance. O It tells you whether one was efficient or not in the use of variable overhead resources. O It tells whether one paid more or less than planned for variable overhead resources.
Which of the following is a TRUE statement about the variable overhead efficiency variance when the allocation base is direct labor hours? O It will report a favorable variance if the direct labor efficiency variance is found favorable. O Part of information used to calculate it can also be used to determine the direct labor rate variance. O It tells you whether one was efficient or not in the use of variable overhead resources. O It tells whether one paid more or less than planned for variable overhead resources.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Which of the following is a TRUE statement about the variable overhead
efficiency variance when the allocation base is direct labor hours?
It will report a favorable variance if the direct labor efficiency variance is found
favorable.
O Part of information used to calculate it can also be used to determine the direct
labor rate variance.
O It tells you whether one was efficient or not in the use of variable overhead
resources.
O It tells whether one paid more or less than planned for variable overhead resources.
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