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7 years ago
Cavalaris Products uses a standard cost system. Overhead costs are allocated based on direct labor hours. In the first quarter, Cavalaris had an unfavorable cost variance for variable overhead costs. Which of the following scenarios is a reasonable explanation for this variance?
A) The actual number of direct labor hours was higher than the budgeted hours.
B) The actual variable overhead costs were higher than the budgeted costs.
C) The actual number of direct labor hours was lower than the budgeted hours.
D) The actual variable overhead costs were lower than the budgeted costs.
Textbook 
Horngren's Financial & Managerial Accounting, The Financial Chapters

Horngren's Financial & Managerial Accounting, The Financial Chapters


Edition: 5th
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7 years ago
This was certainly a tough question, loving the expertise
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