Quality Brand Products uses standard costing to manage its direct s and overhead costs.Overhead costs are allocated based on direct labor hours.In the first quarter,Quality Brand had an unfavorable efficiency variance for their variable overhead costs.Which of the following scenarios would be a reasonable explanation for that variance?

Question

Quizplus · Accepted Answer

An unfavorable efficiency variance for variable overhead costs means that the actual hours worked were more than the budgeted hours. This results in a higher allocation of overhead costs and hence, an unfavorable variance.

Quality Brand Products Uses Standard Costing to Manage Its Direct