Answer (B) is correct . Overtime premiums arising from a heavy overall volume of work rather than from the requirements of a specific job are deemed to apply to all production. Hence, they are treated as indirect costs and assigned to overhead.
Answer (A) is incorrect because The quantity (usage) variance is a direct materials variance that is not affected by overtime wages.
Answer (C) is incorrect because The labor efficiency variance concerns amounts of labor, not rates.
Answer (D) is incorrect because Overtime wages do not affect the yield variance.
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