When machine-hours are used as an overhead cost-allocation base, a rush order resulting in unplanned overtime that used less-skilled workers

ACCOUNTING

Multiple Choice

When machine-hours are used as an overhead cost-allocation base, a rush order resulting in unplanned overtime that used less-skilled workers on the machines would MOST likely contribute to reporting

a. a favorable variable overhead spending variance

b. an unfavorable variable overhead efficiency variance

c. a favorable fixed overhead flexible-budget variance

b. an unfavorable production-volume variance

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