A Direct Labor Rate Variance Would Occur in Which of the Following

question 60

Multiple Choice

A direct labor rate variance would occur in which of the following situations?

• A) When a production employee takes an unplanned break
• B) When a production employee spends more time producing one product than was expected
• C) When a low-paid production employee performs a task higher than his or her assigned level
• D) When a production employee incurs overtime hours at the same hourly rate as regular pay

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Definitions:

Real GDP

Gross Domestic Product adjusted for inflation, showing the value of all goods and services produced over a specific time period in real, inflation-adjusted terms.

Classical Theory

A school of economic thought that emphasizes the role of free markets in regulating the economy and argues for minimal government intervention.

Employment

The condition of having paid work, or the process or business of hiring workers.

Savings

The portion of income not spent on current consumption, often set aside for future use or investment.