A Company Receives an Unusually High Number of Orders in a Month

question 120

Multiple Choice

A company receives an unusually high number of orders in a month. To produce all of the orders within the scheduled dates of delivery, the company pays employees an extra $8 per hour for every hour of overtime the employees work. Which variance would be directly impacted?

• A)Materials price variance
• B)Materials quantity variance
• C)Labor efficiency variance
• D)Labor rate variance

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Definitions:

Gains From Trade

The benefits that countries obtain from engaging in international trade, allowing them to consume and produce beyond their own capabilities.

Tax Revenue

The income gained by the government through the imposition of taxes on individuals and corporations.

Public Benefit

A positive outcome or advantage that serves the general population or community at large.

Equilibrium Price

The price at which the quantity of a product demanded by consumers and the quantity supplied by producers are equal.