When machine-hours are used as an overhead cost-allocation base and annual leasing costs for equipment unexpectedly increase, the MOST likely result w

ACCOUNTING

Multiple Choice

When machine-hours are used as an overhead cost-allocation base and annual leasing costs for equipment unexpectedly increase, the MOST likely result would be to report

a. an unfavorable variable overhead spending variance

b. a favorable variable overhead efficiency variance

c. an unfavorable fixed overhead flexible-budget variance

b. a favorable production-volume variance

Click here for the SOLUTION