A Company Receives an Unusually High Number of Orders in a Month

question 223

Multiple Choice

A company receives an unusually high number of orders in a month. To produce all of the orders within the scheduled dates of delivery, the company pays employees an extra $8 per hour for every hour of overtime the employees work. 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

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Definitions:

Cooling-Off Rule

A regulation that gives consumers a set period of time to cancel a contract or purchase without penalty, intended to protect consumers from high-pressure sales tactics.

Punitive Damages

Monetary compensation awarded to an injured party that goes beyond what is necessary to compensate the individual and is intended to punish the wrongdoer.

Federal Statutory Regulation

Laws enacted by the United States Congress that are designed to regulate specific areas of American life.

Internet

A global network of computers that provides a wide range of information and communication facilities.