Use the Following to Answer Questions

question 24

Multiple Choice

Use the following to answer questions :
Table: Wages and Hours Willing to Work
-(Table: Wages and Hours Willing to Work) Look at the table Wages and Hours Willing to Work, which shows data on wage per hour and the number of hours someone is willing to work. Which variable would economists put on the vertical axis?

• A)Either variable
• B)the wage, because even though it is the independent variable, it is a price
• C)hours willing to work, because it is the dependent variable
• D)neither variable

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Definitions:

Unfavorable

A term used to describe a variance or difference that negatively impacts financial performance.

Labor Rate Variance

The difference between the expected cost of labor at standard rates and the actual cost of labor incurred.

Raw Materials Quantity Variance

The difference between the expected amount of raw materials required for production and the actual amount used, evaluated in terms of cost.

Labor Rate Variance

The difference between the actual cost of direct labor and the expected (or standard) cost, based on the standard hours worked and standard labor rate.