An Unfavorable Labor Efficiency Variance Is Created When

question 85

Multiple Choice

An unfavorable labor efficiency variance is created when:

• A) actual labor hours worked exceed standard hours allowed.
• B) actual hours worked are less than standard hours allowed.
• C) actual wages paid are less than amounts that should have been paid.
• D) actual units produced exceed budgeted production levels.
• E) actual units produced exceed standard hours allowed.

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Definitions:

Positively Related

A relationship in which two variables move in the same direction; as one increases, the other also increases.

Negatively Related

A relationship between two variables where one decreases as the other increases, and vice versa.

Unrelated

Not connected or associated with something else in any way.

Labor Force Participation Rate

The percentage of the working-age population that is either employed or actively looking for work.