A Company Would Most Likely Have an Unfavorable Labor Rate

question 164

Multiple Choice

A company would most likely have an unfavorable labor rate variance and a favorable labor efficiency variance if

• A)the mix of workers used in the production process was more experienced than the normal mix.
• B)the mix of workers used in the production process was less experienced than the normal mix.
• C)workers from another part of the plant were used due to an extra heavy production schedule.
• D)the purchasing agent acquired very high quality material that resulted in less spoilage.

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Definitions:

Assigned

Transferred or allocated to a party or for a specific purpose.

Repossess

The act of taking back goods or property by a seller or lender from the buyer or borrower, usually due to failure to meet the terms of the sale or loan agreement.

Deficit

A financial situation where expenditures exceed revenue.

Security Agreement

A security agreement is a legal document that provides a lender a security interest in a specified asset or property pledged as collateral, detailing the terms regarding the secured transaction.