Marshall Company uses a standard cost system. Variable overhead costs are allocated based on direct labor hours. In the first quarter, Marshall had a favorable efficiency variance for variable overhead costs. Which of the following scenarios is a reasonable explanation for this variance?
A) The actual number of direct labor hours was lower than the budgeted hours.
B) The actual variable overhead costs were higher than the budgeted costs.
C) The actual variable overhead costs were lower than the budgeted costs.
D) The actual number of direct labor hours was higher than the budgeted hours.
A) The actual number of direct labor hours was lower than the budgeted hours.
You might also like to view...
Compare innovation through development of new-to-the-world products with the use of incremental innovation
What will be an ideal response?
±2.58 standard deviations describes the range in which 95% of the area underneath the curve is found
Indicate whether the statement is true or false
Managers may deflate performance ratings to make themselves look good as managers.
Answer the following statement true (T) or false (F)
Discuss the similarities and differences between an intranet and an extranet.
What will be an ideal response?