Wednesday, June 8, 2011

When machine-hours are used as an overhead cost-allocation base, the MOST likely cause of a favorable variable overhead spending variance is

ACCOUNTING

Multiple Choice

When machine-hours are used as an overhead cost-allocation base, the MOST likely cause of a favorable variable overhead spending variance is

a. excessive machine breakdowns

b. the production scheduler efficiently scheduled jobs.

c. a decline in the cost of energy

d. strengthened demand for the product

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