Felter Company uses a standard costing system based on direct labour hours. Last month, Felter Company used more electricity and indirect materials than planned. This is likely to result in
A) unfavourable variable overhead efficiency variance.
B) unfavourable variable overhead efficiency variance and unfavourable variable overhead spending variance.
C) unfavourable variable overhead efficiency variance and unfavourable fixed overhead variance.
D) unfavourable variable overhead spending variance.

Question

Quizplus · Accepted Answer

The Answer of Felter Company uses a standard costing system based on direct labour hours. Last month, Felter Company used more electricity and indirect materials than planned. This is likely to result in
A) unfavourable variable overhead efficiency variance.
B) unfavourable variable overhead efficiency variance and unfavourable variable overhead spending variance.
C) unfavourable variable overhead efficiency variance and unfavourable fixed overhead variance.
D) unfavourable variable overhead spending variance.

Felter Company Uses a Standard Costing System Based on Direct