An Unfavorable Direct Labor Rate Variance Indicates Which of the Following

question 146

Multiple Choice

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

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

---

Definitions:

Personal Selling

The two-way flow of communication between a buyer and a seller that is designed to influence the buyer’s purchase decision.

Economies of Scale

The reduction in per-unit cost achieved by an increase in production volume, allowing businesses to spread fixed costs over more units.

Mass Customization

A strategy that allows consumers to personalize specific aspects of a product while still producing it in large volumes, combining the benefits of mass production with individual customization.

Online Shopping

The act of purchasing products or services over the Internet, allowing consumers to buy goods from the comfort of their own homes.