An Unfavorable Direct Labor Rate Variance Indicates Which of the Following

question 81

Multiple Choice

An unfavorable direct labor rate variance indicates which of the following?

• A)Both actual quantity and actual cost of direct labor hours exceeded standard quantity and standard cost of hours for actual output.
• B)The actual quantity of direct labor hours worked exceeded the standard quantity of hours for actual output.
• C)The actual direct labor cost per hour exceeded the standard direct labor cost per hour for actual quantity of direct labor hours.
• D)The actual cost of direct labor per hour was less than the standard cost of direct labor per hour.

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Definitions:

Competitive

Being Competitive means being able to offer products or services that are more attractive to consumers than those of competitors, either through lower prices, higher quality, or unique features.

Economic Profit

The difference between the total revenue earned by a business and the total opportunity costs of all resources used in production.

Competitive

Relating to or characterized by rivalry among sellers in a market, aiming to increase sales, market share, and customer loyalty by offering better terms.

Maximum

The highest or greatest possible amount or degree of something.