A Review of Skilled Engineering Labor Rates and Variances

question 3

Multiple Choice

A review of skilled engineering labor rates and variances at Kumisomo Industries revealed the following: Actual wage per hour was $15,as opposed to $13 standard.Actual labor hours per unit produced were 1.2 compared with 1.4 hours standard.If during a period 1,000 units were produced,which of the following is false?

• A)The DL wage variance is unfavorable.
• B)The DL wage variance is $2,400 favorable
• C)The DL efficiency variance is $2,600 favorable
• D)The DL efficiency variance may be random
• E)None of the above is false

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Definitions:

Pricing Strategy

An approach businesses use to set the prices for their products or services based on market conditions, production costs, competitor prices, and company objectives.

Distribution Strategy

The plan a business uses to make its products or services available to customers, including channels, coverage, and logistics.

Product Strategy

An action plan for managing a product throughout its lifecycle, focusing on introducing, growing, and maintaining market share.

Persuading

The act of convincing someone to do or believe something through reasoning or argument.