Each of the following may cause an unfavourable variable overhead budget variance except
A)higher than expected use of indirect materials.
B)greater than expected use of indirect labour.
C)increases in indirect manufacturing costs.
D)inefficient use of direct materials.

Question

Quizplus · Accepted Answer

The question is asking for a cause of an unfavourable variance in variable overhead budget. The use of direct materials is not considered a variable overhead cost, so the inefficient use of direct materials would not impact the variable overhead budget variance. The other choices are all potential causes of an unfavourable variance.

Each of the Following May Cause an Unfavourable Variable Overhead