An Unfavorable Labor Rate Variance Could Most Likely Result from All

question 55

Multiple Choice

An unfavorable labor rate variance could most likely result from all of the following except:

• A)Producing at levels of output which exceed normal output levels.
• B)Using highly skilled laborers to perform tasks normally performed by unskilled laborers.
• C)Having laborers work excessive overtime hours.
• D)Using outdated standard cost figures.

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Definitions:

Statement Of Partnership Equity

A summary of the changes in each partner’s capital in a partnership that have occurred during a specific period of time.

Partner Capital

The amount of money and resources contributed by partners in a partnership that is allocated to their individual capital accounts.

Capital Accounts

Ledger accounts that show the investment amounts of owners or shareholders in a company.

Loss On Realization

occurs when the proceeds from selling an asset or settling a liability are less than the carrying amount on the books.