If variable manufacturing overhead is applied on the basis of direct labor-hours and the variable overhead rate variance is favorable, then:

A. the actual variable overhead rate exceeded the standard rate.
B. the standard direct labor-hours allowed for the actual output exceeded the actual hours.
C. the standard variable overhead rate exceeded the actual rate.
D. the actual direct labor-hours exceeded the standard direct labor-hours allowed for the actual output.


Answer: C

Business

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