If the Actual Average Wage Rate Is $4

question 32

Multiple Choice

If the actual average wage rate is $4.50 per direct labor hour,but the standard wage rate is $4.70 per direct labor hour,

• A)The direct labor efficiency variance will be favorable.
• B)The direct labor efficiency variance will be unfavorable.
• C)The direct labor rate variance will be favorable.
• D)The direct labor rate variance will be unfavorable.

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Definitions:

Demand

The quantity of a particular good or service that consumers are willing and able to purchase at various prices during a given period of time.

Supply Curve

A graphical representation showing the relationship between the quantity of goods that producers are willing to sell and the price of those goods.

Relatively Elastic

Describes a situation where the quantity demanded or supplied of a good or service changes significantly in response to a change in price.