Suppose the Actual Labour Rate Exceeds the Standard Labour Rate

question 32

Multiple Choice

Suppose the actual labour rate exceeds the standard labour rate, and the actual labour hours exceed the number of hours allowed. What would be the labour rate variance and labour efficiency variance? Labour Rate Labour Efficiency
Variance Variance

• A) favourable favourable
• B) favourable unfavourable
• C) unfavourable favourable
• D) unfavourable unfavourable

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Definitions:

Binding Awards

Decisions made by an arbitrator or judicial body that are legally enforceable and must be adhered to by the parties involved.

Restraint Of Trade

Agreement between firms to fix prices, injure competition, or prevent others from entering a market.

Exclusive Bargaining Representative

A labor union that has the sole authority to negotiate the terms of employment on behalf of all employees in a specific workplace.

Trade Union

An organization formed by workers in related sectors to protect their rights, negotiate wages, and improve working conditions.