If the Actual Labor Rate Exceeds the Standard Labor Rate

question 84

Multiple Choice

If the actual labor rate exceeds the standard labor rate and the actual labor hours exceed the number of hours allowed, the labor rate variance and labor efficiency variance will be

• A) Favorable Favorable
• B) Favorable Unfavorable
• C) Unfavorable Favorable
• D) Unfavorable Unfavorable

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Definitions:

Historical Cost

The original monetary value of an asset as it appears in the financial records, not adjusted for inflation or changes in value.

Subsequent Carrying

The process of recording or managing an asset on the balance sheet after its initial recognition, reflecting any changes in value.

Employees' Lounge

A designated area within a workplace set aside for employees to relax, take breaks, and socialize, often equipped with amenities for comfort or entertainment.

HVAC System

A technology of indoor and vehicular environmental comfort that stands for Heating, Ventilation, and Air Conditioning, used to provide thermal comfort and acceptable indoor air quality.