Which of the Following Is the Most Probable Reason a Company

question 95

Multiple Choice

Which of the following is the most probable reason a company would experience an unfavorable labor rate variance and a favorable labor efficiency variance?

• A) The mix of workers assigned to the particular job was heavily weighted towards the use of higher paid experienced individuals.
• B) The mix of workers assigned to the particular job was heavily weighted towards the use of new relatively low paid unskilled workers.
• C) Because of the production schedule, workers from other production areas were assigned to assist this particular process.
• D) Defective materials caused more labor to be used in order to produce a standard unit.

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Definitions:

Partial Worksheet

A preliminary financial document used internally to prepare for the completion of the full financial statements.

Adjusted Trial Balance

A statement that lists all the accounts and their balances after adjusting entries are made, used to prepare financial statements.

Financial Statement Column(s)

Columns in financial statements that organize data, such as assets, liabilities, and equity, to convey a company's financial position or performance.

Net Income

The net income of a business following the subtraction of all costs and tax obligations from its total earnings.