When Variable Overhead Efficiency Variance Is Favorable, It Can Be

Multiple Choice

When variable overhead efficiency variance is favorable, it can be safely assumed that the ________.

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