What Does a Favourable Labour Rate Variance Indicate

question 97

Multiple Choice

What does a favourable labour rate variance indicate?

• A) Actual hours exceed standard hours.
• B) Standard hours exceed actual hours.
• C) The actual rate exceeds the standard rate.
• D) The standard rate exceeds the actual rate.

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Definitions:

Point Estimate

A point estimate is a single value approximation of a population parameter based on sample data.

Population Proportions

The fraction or percentage of the population that has a particular property or characteristic.

P-Value

The probability of observing results as extreme as those obtained during a study, assuming the null hypothesis is accurate.

Mean Hourly Wages

The average amount of earnings per hour worked across a specific group or sector.