The Unemployment Rate Is High in the City in Which

question 175

Multiple Choice

The unemployment rate is high in the city in which a company has a factory. The company finds that they are able to pay new employees a lower wage per hour than when the unemployment rate was lower a year ago. Which of the following variances may be directly impacted?

• A)Direct materials price variance
• B)Direct materials quantity variance
• C)Direct labor efficiency variance
• D)Direct labor rate variance

---

Definitions:

Salary Workers

Employees who are paid a fixed amount of money or remuneration on a regular basis, typically monthly or annually, not hourly.

Regular Earnings

Regular earnings refer to the normal income that an employee receives from their employer, including wages or salaries before deductions or bonuses.

Overtime Pay

Additional compensation provided to employees for hours worked beyond their standard working hours.

Federal and State Income Tax

Taxes imposed by the federal and state governments on taxable income earned by individuals and corporations.