A Direct Labor Rate Variance Would Occur in Which of the Following

question 60

Multiple Choice

A direct labor rate variance would occur in which of the following situations?

• A) When a production employee takes an unplanned break
• B) When a production employee spends more time producing one product than was expected
• C) When a low-paid production employee performs a task higher than his or her assigned level
• D) When a production employee incurs overtime hours at the same hourly rate as regular pay

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Definitions:

Defined Benefit Pension Plan

A retirement plan where the employer guarantees a specified pension payment upon the employee's retirement, determined by a formula considering factors such as salary history and duration of employment.

Anticipated Life Span

The expected duration or period during which an asset, product, or individual is considered useful or viable.

Pension Expense

The cost recognized in an accounting period related to the company's pension plan.

Defined Contribution Pension Plan

A type of retirement plan where an employer, employee, or both make contributions and the final payout depends on the plan's investment performance.