Bukowitz Inc

question 54

Multiple Choice

Bukowitz Inc.has a favourable direct labour rate variance.Which of the following would be the most likely reason for this variance?

• A) The company used lower-paid workers in the production process more than they had expected.
• B) Employees took a shorter amount of time to produce the product than expected.
• C) The company used a standard direct labour rate that was too low.
• D) Employees used less direct materials in the production process than expected.

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Definitions:

Substitute Resources

Alternative means or materials that can be used to achieve the same function or production goal in the absence of preferred resources.

Price of Capital

The cost of using capital assets for production, including interest rates on loans or opportunity costs of using own capital.

Wage Rate

The amount of money paid to an employee by an employer in exchange for work performed, typically expressed on an hourly, daily, or piecework basis.

Workers Hired

The process of employing individuals to perform tasks or services in exchange for compensation.