Question
Assume we are working in a setting where the assumption regarding the PDR [predetermined overhead rate] holds true. Which of the following correctly states an
Assume we are working in a setting where the "assumption" regarding the PDR [predetermined overhead rate] holds true. Which of the following correctly states an intended result when this "assumption" holds? \ \ Question 3 options:\ \ Both the LEV [labor efficiency variance] and VOEV [variable overhead efficiency variance] will reflect the same label [F or U]. \ \ \ The LEV [labor efficiency variance] will be favorable and the VOEV [variable overhead efficiency variance] will be unfavorable.\ \ \ The LEV [labor efficiency variance] will be unfavorable and the VOEV [variable overhead efficiency variance] will be favorable.\ \ \ Even when the assumption holds, there is no way to accurately predict the label [F or U ] for these variances [ LEV and VOEV].
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