Question

When machine-hours are used as an overhead cost-allocation base, the MOST likely cause of a favorablevariable overhead spending variance is: A. the production scheduler efficiently scheduled jobs B. excessive machine breakdowns C. strengthened demand for the product D. a decline in the cost of energy

Answer 1

D. a decline in the cost of energy

Step-by-step explanation:

As per definition, A variable overhead spending variance is favorable that means the the actual rate per hour is less in this case as machine hours is the allocation base so any decline in cost of energy.