ANSWER BOTH

Peace Corp's spending variance for variable overhead costs is favorable and its flexible budget variance for variable overhead costs is unfavorable. This means Peace's efficiency variance for variable overhead costs: is unfavorable depends on the direct labor variances is favorable could be favorable or unfav ble Question 21 2 pts Davy Corporation is considering a shift from traditional costing to Activity based costing (ABC). If they make this shift: direct labor costs would change from traditional to ABC. both direct labor and direct material costs would change from traditional to ABC. only manufacturing overhead costs would change from traditional to ABC. direct materials costs and manufacturing overhead costs would change from traditional to ABC