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Question 6 Scenario: A machine malfunction on the assembly line resulted in decreased output by the machine operator and more than normal time spent on

Question 6 Scenario: A machine malfunction on the assembly line resulted in decreased output by the machine operator and more than normal time spent on machine repair. (Repairs costs are treated as variable overhead costs.)

Indicate which of the following standard cost variances would be affected. More than one variance may be affected.

a) Materials price variance.

b) Materials quantity variance.

c) Labor rate variance.

d) Labor efficiency variance.

e) Variable overhead spending (rate) variance.

f) Variable overhead efficiency variance.

g) Fixed overhead budget variance.

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