If variable manufacturing overhead is applied based on direct labor hours and the variable overhead rate variance is favorable, then:

Group of answer choices

The actual direct labor hours exceeds the standard direct labor hours allowed for the actual output.

The standard direct labor hours allowed for the actual output exceeds the actual direct labor hours.

The standard variable manufacturing overhead rate exceeds the actual variable manufacturing overhead rate.

The actual total variable manufacturing costs must be lower than the variable overhead costs applied to work in process inventory.