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texasmade2550 texasmade2550
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Indirect materials are classified as manufacturing overhead. How might indirect materials generate an unfavorable variance that is not related to the efficient use of the variable overhead activity driver?
Textbook 

Managerial Accounting


Edition: 4th
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crusherpsgcrusherpsg
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Overhead items will cost more or less than budgeted due to changes in costs of those items or their inefficient use. For example, utility costs may be more than budgeted because of a rate increase or because employees waste electricity. Indirect materials can be stolen; they can spoil, shrink, or become obsolete.

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