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Which of the following is NOT a possible cause of actual machine hours exceeding budgeted machine hours? Option 1: Increased machine efficiency Option 2: Equipment breakdowns Option 3: Overestimation of production needs Option 4: Employee absenteeism

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Final answer:

Increased machine efficiency decreases the total machine hours needed for a given level of production and will not lead to actual machine hours exceeding budgeted machine hours. While increased machine efficiency improves production, options like equipment breakdowns, overestimation of production needs, and employee absenteeism can lead to exceeding budgeted machine hours.

Step-by-step explanation:

In the context of a business running machines for production, actual machine hours can exceed the budgeted machine hours due to several factors. However, one reason that would not lead to hours exceeding budgeted machine hours is - Option 1: Increased machine efficiency.

This is because increased machine efficiency means that the machines would be able to produce more in the same amount of time, or the same amount in less time. In other words, more efficient machines should decrease the total machine hours needed for a given level of production, not increase them. In contrast, the other options - equipment breakdowns, overestimation of production needs, and employee absenteeism can indeed lead to the actual use of machine hours exceeding the budgeted amount.

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