Johnsonville uses direct labor hours to apply variable overhead to production. If the company's workers...
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Accounting
Johnsonville uses direct labor hours to apply variable overhead to production. If the company's workers were very inefficient during the period, which of the following statements would be true about the variable-overhead efficiency variance?
Group of answer choices
The variance would be favorable
The variance would be unfavorable
The nature of the variance (favorable or unfavorable) would be unknown based on the facts presented.
| The variance would be the same dollar amount as the labor efficiency variance. |
None of the other answers are correct.
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