Explain allocation base. How does it function as a cost driver?
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When machine-hours are used as an overhead cost-allocation base, a rush order resulting in unplanned overtime that used less-skilled workers on the machines wouldMOST likely contribute to reporting a(n)unfavorable production volume variancefavorable variable overhead spending variancefavorable fixed overhead flexible budget varianceunfavorable variable overhead efficiency variance
When machine-hours are used as an overhead cost-allocation base, a r…
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