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:

EFT

Electronic Funds Transfer, a digital method for transferring funds from one bank account to another, either within a single financial institution or across multiple institutions, through computer-based systems.

Cash Equivalents

Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value.

Bank Overdrafts

Occurs when withdrawals from a bank account exceed the available balance, giving the account a negative balance.

Treasury Bills

Short-term government securities issued at a discount from the face value and mature in a year or less, used by governments to raise funds.