Basis of direct labor-hours

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Reference no: EM13146858

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

A) actual variable overhead rate exceeded the standard rate.

B) standard variable overhead rate exceeded the actual rate.

C) actual direct labor-hours exceeded the standard direct labor-hours allowed for the actual output.

D) standard direct labor-hours allowed for the actual output exceeded the actual hours.

Reference no: EM13146858

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