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When direct labor is used as the overhead allocation base, the variable overhead efficiency variance ______. Multiple choice question. cannot be calculated will always be unfavorable will be favorable when the direct labor efficiency variance is favorable explains how efficient overhead resources were used

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When direct labor is used as the overhead allocation base, the variable overhead efficiency variance will be favorable.

What is direct labor?

It should be noted that direct labor simply means the production that is assigned to a specific product.

In this case, when direct labor is used as the overhead allocation base, the variable overhead efficiency variance will be favorable.

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