What Does an Unfavourable Direct Labour Price Variance Indicate

question 51

Multiple Choice

What does an unfavourable direct labour price variance indicate?

• A) Both actual quantity and actual cost of direct labour hours exceeded standard quantity and standard cost of hours for actual output.
• B) The actual quantity of direct labour hours worked exceeded the standard quantity of hours for actual output.
• C) The actual cost of direct labour per hour was less than the standard cost of direct labour per hour.
• D) The actual direct labour cost per hour exceeded the standard direct labour cost per hour for actual quantity of direct labour hours.

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Definitions:

Two-tail Wilcoxon Rank Sum Test

A nonparametric hypothesis test evaluating whether two independent samples come from the same distribution, considering extreme values at both ends.

Two Populations

Refers to comparing or analyzing two distinct groups or datasets in statistical analysis.

Kruskal-Wallis Test

A non-parametric method for testing whether samples originate from the same distribution, used when the ANOVA assumptions cannot be met.

One-tail

Refers to a one-tailed test in statistics where the critical area of a distribution is one-sided so that it tests for the possibility of an effect in one direction.