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Assume that variable overhead is primarily composed of indirect labor (employees monitoring the machines). What does your answer to question 3 prove about the number
Assume that variable overhead is primarily composed of indirect labor (employees monitoring the machines). What does your answer to question 3 prove about the number of indirect labor hours required to produce each unit of output during the year, compared to the budgeted number of indirect labor hours required? Circle one. It proves that it took more indirect labor hours than budgeted to produce each unit of output. It proves that it took fewer indirect labor hours than budgeted to produce each unit of output. The answer to question 3 proves nothing about the number of indirect labor hours taken to produce each unit of output. Briefly (two-three sentences) explain your answer. Note that no computations are necessary. (5 points)
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