Tulley Manufacturing Has an Unfavourable Direct Labour Rate Variance

question 66

Multiple Choice

Tulley Manufacturing has an unfavourable direct labour rate variance.Which of the following would be the most likely reason for this variance?

• A) The company used lower-paid workers than they had expected.
• B) Employees took a longer amount of time to produce the product than expected.
• C) The company gave employees an unexpected raise due to union negotiations.
• D) Employees used more direct materials in the production process than expected.

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Definitions:

Significant Influence

The capacity of an investor to affect the financial or operating policies of an investee without having full control or majority ownership.

Individual AFS Securities

Available-for-Sale (AFS) securities are financial assets held by an organization that can be sold in the market, where "individual" refers to each specific security within the AFS category.

Net Proceeds

The amount of money received from a transaction after deducting all associated costs and expenses.

Cost Method

An accounting approach used for investments, where the investment is recorded at cost and adjustments are made for dividends received or permanent declines in value.