Vidyalelo
Commerce · Q241

Costing

Graduate and Post Graduate · Commerce · question 241

Q241

"Which of the following would explain an adverse variable production overhead efficiency variance? 1 Employees were of a lower skill level than specified in the standard 2 Unexpected idle time resulted from a series of machine breakdown 3 Poor Quality material was difficult to process"

A.
(1), (2) and (3)
B.
(1) and (2)
C.
(2) and (3)
D.
(1) and (3)
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
The following that would explain an adverse variable production overhead efficiency variance are Employees were of a lower skill level than specified in the standard and Poor Quality material was difficult to process.