When machine-hours are used as a cost-allocation base,the item most likely to contribute to a favorable variable overhead efficiency variance is ________.

Question

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When machine-hours are used as a cost-allocation base, the variable overhead efficiency variance measures the difference between actual and expected hours of work. Therefore, having a skillful workforce that can complete jobs in fewer hours than expected would contribute to a favorable variance. Excessive machine breakdowns (A) would increase the actual hours spent, leading to an unfavorable variance. Additional machinery (C) and strengthened demand for the product (D) would increase the total machine-hours, but would not necessarily lead to improved efficiency per hour.

When Machine-Hours Are Used as a Cost-Allocation Base,the Item Most