A Labor Efficiency (Usage) Variance Is Most Likely to Occur

question 18

Multiple Choice

A labor efficiency (usage) variance is most likely to occur if:

• A) Employees are paid at an overtime wage rate.
• B) Employees are inefficient and units must be reworked.
• C) Labor cost per unit exceeds materials costs per unit.
• D) Employee turnover rates are low.

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Definitions:

Automobiles

Motor vehicles equipped with four wheels and an internal combustion engine or electric motor, designed for passenger transportation.

Quantitative Variable

A variable that can take on numeric values, allowing for measurable differences in magnitude or size.

Overall Shape

A descriptive term referring to the general form or contour of a distribution or data set.

Deviations

Variations or departures from a standard or norm.