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    JMS327's Avatar
    JMS327 Posts: 1, Reputation: 1
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    #1

    Jun 1, 2007, 06:18 PM
    Variable Overhead efficiency variable
    Variable overhead is applied in the basis of standard direct labor-hours. If the direct labor efficiency variance is unfavorable, the variable overhead efficiency variance will be?

    a Favorable
    b unfavorable
    c zero
    d indeterminable
    omsailogistic's Avatar
    omsailogistic Posts: 39, Reputation: -1
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    #2

    Jun 3, 2007, 04:06 AM
    The Variabel overhead efficiency is directly relatable to Direct Labour Hours

    Therefore a direct relationship exists between
    Direct Labour Hours &
    Variable Overhead Hours.

    Varibale overhead effciency variance is directly relatable to Direct Labour hours, if there is no IDLE TIME HOURS.

    The answer to your question is ( b )
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