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9 November, 14:06

If variable manufacturing overhead is applied on the basis of direct labor-hours and the variable overhead rate variance is favorable, then: Garrison 16e Rechecks 2017-08-17 Multiple Choice

the actual variable overhead rate exceeded the standard rate.

the standard variable overhead rate exceeded the actual rate.

the standard direct labor-hours allowed for the actual output exceeded the actual hours.

None of the above

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  1. 9 November, 17:28
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    Variable overhead rate variance=Actual overhead costs - (actual hours*Standard rate)

    Given the variable overhead rate variance is favourable that means the actual overhead rate is less than the standard overhead rate.
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