Which of the Following Will Result in an Unfavorable Direct

question 123

Multiple Choice

Which of the following will result in an unfavorable direct labor price variance?

• A) When actual direct labor hours exceed standard direct labor hours
• B) When actual direct labor hours are less than standard direct labor hours
• C) When the actual direct labor rate exceeds the standard direct labor rate
• D) When the actual direct labor rate is less than the standard direct labor rate

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Definitions:

Finishing Department

The final stage in the manufacturing process where products are completed, packaged, and prepared for delivery.

Direct Labor-Hour

A measure of the work time spent by employees who are directly involved in the production process.

Manufacturing Overhead

The indirect factory-related costs that are incurred when a product is manufactured.

Forming Department

A section within a manufacturing process where raw materials are shaped or formed into parts before being assembled into final products.