Using More Direct Labor Hours for Units Produced Than the Amount

question 19

Multiple Choice

Using more direct labor hours for units produced than the amount allowed by the standard results in:

• A) An unfavorable total labor variance.
• B) An unfavorable labor efficiency variance, regardless of the wage rate paid employees.
• C) An unfavorable labor efficiency variance only if the wage rate is higher than standard cost allowed.
• D) A favorable labor rate variance, because the hourly wage rate is automatically reduced when workers operate less efficiently.

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Definitions:

Delusions

Fixed false beliefs that conflict with reality, despite evidence to the contrary, often observed in psychiatric conditions, such as schizophrenia.

Perception

The process by which individuals organize and interpret their sensory impressions to give meaning to their environment.

Socioeconomic Status

A measure of an individual's or family's economic and social position relative to others, based on income, education, and occupation.

Life Stressors

Events or conditions in one's environment that cause stress or discomfort.