1B1L A COMPANY APPLIES VARIABLE OVERHEAD BASED UPON DIRECT LABOR HOUR...

96. CSO: 1B1e LOS: 1B1l

A company applies variable overhead based upon direct labor hours and has a variable

overhead efficiency variance that is $25,000 favorable. A possible cause of this variance

is that

a. higher skilled labor was used.

b. electricity rates were lower than expected.

c. less supplies were used than anticipated.

d. less units of finished goods were produced.