At the End of 2010, ELM's Production Manager Estimated Direct

Multiple Choice

At the end of 2010, ELM's production manager estimated direct labor overtime hours at 200 for the first quarter of 2010. At the end of the first quarter, actual overtime hours totaled 180. This difference is most likely to lead to

A) Favorable variable overhead spending variance
B) Unfavorable production volume variance
C) Favorable labor efficiency variance
D) Unfavorable labor efficiency variance