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If the denominator activity is less than the standard hours allowed for the actual output, one would expect that: Multiple Choice the variable overhead efficiency variance would be unfavorable. the fixed overhead volume variance would be favorable. the fixed overhead budget variance would be unfavorable. the variable overhead efficiency variance would be favorable.

Sagot :

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Answer:

The variable overhead efficiency variance would be favorable.

Explanation:

Variable overhead efficiency variance: Variable overhead efficiency variance aims to determine whether or not their exist savings or extra cost incurred on variable overhead as a result of workers being faster or slower that expected.  

Since the variable overhead is charged using labour hours, any amount by which the actual labour hours differ from the standard allowable hours would result in a variance

A favourable variance would occurs when actual hours is less than the standard hours allowed for the actual output.

The variance in Dollars is the difference in actual hours and standard hours for actual output multiplied by the standard variable overhead rate

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