expand icon
book Cornerstones of Managerial Accounting 6th Edition by Maryanne Mowen,Don Hansen ,Dan Heitger cover

Cornerstones of Managerial Accounting 6th Edition by Maryanne Mowen,Don Hansen ,Dan Heitger

Edition 6ISBN: 978-1305103962
book Cornerstones of Managerial Accounting 6th Edition by Maryanne Mowen,Don Hansen ,Dan Heitger cover

Cornerstones of Managerial Accounting 6th Edition by Maryanne Mowen,Don Hansen ,Dan Heitger

Edition 6ISBN: 978-1305103962
Exercise 62
Because the calculation of both variances is based on direct labor hours, a favourable labor efficiency variance implies that
a. the variable overhead efficiency variance will be favorable.
b. the variable overhead efficiency variance will also be unfavorable.
c. there will be no variable overhead efficiency variance.
d. the variable overhead spending variance will be unfavorable.
e. the variable overhead is overapplied.
Explanation
Verified
like image
like image

b) If labor efficiency variance is unfav...

close menu
Cornerstones of Managerial Accounting 6th Edition by Maryanne Mowen,Don Hansen ,Dan Heitger
cross icon