If the Actual Labour Rate Exceeds the Standard Labour Rate $\underline{\text { Labour Rate Variance }} \quad \underline{\text { Labour Efficiency Variance }}$

question 77

Short Answer

If the actual labour rate exceeds the standard labour rate and the actual labour hours exceed the number of hours allowed,what will be the labour rate variance and labour efficiency variance?
$\underline{\text { Labour Rate Variance }} \quad \underline{\text { Labour Efficiency Variance }}$
A) $\begin{array}{lll}&\text { Favourable } &&&&& \text { Favourable } \\\end{array}$
B) $\begin{array}{lll}&\text { Favourable } &&&&& \text { Unfavourable } \\\end{array}$
C) $\begin{array}{lll}&\text { Unfavourable } &&&& \text { Favourable } \\\end{array}$
D) $\begin{array}{lll} &\text { Unfavourable } &&&& \text { Unfavourable }\end{array}$

• A)\(\begin{array}{lll}
• &\text { Favourable } &&&&& \text { Favourable } \\\end{array}\)
• B)\(\begin{array}{lll}&\text { Favourable } &&&&& \text { Unfavourable } \\\end{array}\)
• C)\(\begin{array}{lll}&\text { Unfavourable } &&&& \text { Favourable } \\\end{array}\)
• D)\(\begin{array}{lll} &\text { Unfavourable } &&&& \text { Unfavourable }
• \end{array}\)

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Definitions:

International Financial Management

The discipline concerned with managing financial resources in a global market, including investment, financing strategies, and risk management across borders.

Cultural Heritages

The legacy of physical artifacts and intangible attributes of a group or society that are inherited from past generations, maintained in the present, and bestowed for the benefit of future generations.

Currency Values

The worth of one nation’s currency in terms of another currency, influenced by factors such as inflation rates, interest rates, and economic stability.

Cost of Capital

The rate of return that a company must earn on its investments to maintain its market value and satisfy its investors and creditors.