Question

Helena Company uses a standard cost system, and allocates variable overhead costs based on direct labor hours. This month, the firm had an unfavorable efficiency variance for variable overhead costs. Which of these scenarios is a reasonable explanation for this variance?
A. The actual variable overhead costs were lower than the budgeted costs.
B. The actual variable overhead costs were higher than the budgeted costs.
C. The actual number of direct labor hours used was higher than the budgeted hours.
D The actual number of direct labor hours used was lower than the budgeted hours.

Answer 1

Answer:

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Explanation:

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