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When Variable Overhead Spending Variance Is Unfavorable, It Can Be

Question 101

Multiple Choice

When variable overhead spending variance is unfavorable, it can be safely assumed that ________.


A) actual rate per unit of cost-allocation base is higher than budgeted rate
B) actual quantity of cost-allocation base used is higher than budgeted quantity
C) actual rate per unit of cost-allocation base is lower than budgeted rate
D) actual quantity of cost-allocation base used is lower than budgeted quantity

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