QuestionJuly 21, 2025

Debiting Variable Overhead Efficiency Variance means we had an unfavorable outcome. True False

Debiting Variable Overhead Efficiency Variance means we had an unfavorable outcome. True False
Debiting Variable Overhead Efficiency Variance means we had an unfavorable
outcome.
True
False

Solution
4.7(312 votes)

Answer

True Explanation 1. Define Variable Overhead Efficiency Variance It measures the difference between actual and expected efficiency in using variable overhead resources. 2. Determine Favorability An unfavorable variance occurs when actual usage exceeds expected usage, leading to higher costs. 3. Interpret Debiting Debiting indicates an increase in expenses or unfavorable outcome in accounting terms.

Explanation

1. Define Variable Overhead Efficiency Variance<br /> It measures the difference between actual and expected efficiency in using variable overhead resources.<br /><br />2. Determine Favorability<br /> An unfavorable variance occurs when actual usage exceeds expected usage, leading to higher costs.<br /><br />3. Interpret Debiting<br /> Debiting indicates an increase in expenses or unfavorable outcome in accounting terms.
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