If a company that applies variable overhead on the basis of direct labor hours records an unfavorable direct labor efficiency variance,the variable overhead efficiency variance will be
A)unfavorable.
B)favorable.
C)zero.
D)undeterminable.

Question

Quizplus · Accepted Answer

When there is an unfavorable direct labor efficiency variance, it means that more hours were used than expected to produce the same amount of output. This will result in more variable overhead being applied than expected, leading to an unfavorable variable overhead efficiency variance.

If a Company That Applies Variable Overhead on the Basis