All of the Following Are Possible Causes of a Favorable

question 8

Multiple Choice

All of the following are possible causes of a favorable labor rate variance except:

• A)a higher mix of unskilled workers causing hourly rates to be lower than anticipated.
• B)product demand that was lower than expected causing a reduction in the amount of overhead initially anticipated.
• C)a higher mix of skilled workers causing hourly rates to be higher than anticipated.
• D)a new labor contract that was negotiated at lower pay rates than anticipated.
• E)None of the answer choices is correct.

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Definitions:

Probability Distribution

A statistical function that describes all the possible values and likelihoods that a random variable can take within a given range.

Event

An occurrence or happening at a specific place and time, often of significance.

Curve

A graphical representation of data points or a mathematical function on a plane, showing the relationship between two or more variables.

Normal Distribution

A chance distribution evenly balanced around the mean, revealing that instances close to the mean occur more frequently than those far from it.