Which of the Following Would Produce a Labor Rate Variance

question 66

Multiple Choice

Which of the following would produce a labor rate variance?

• A)Poor quality materials causing breakage and work interruptions.
• B)Use of persons with high hourly wage rates in tasks that call for low hourly wage rates.
• C)Excessive number of hours worked in completing a job.
• D)An unfavorable variable overhead rate variance.

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Definitions:

Estimated Useful Life

The period over which a depreciable asset is expected to be used by an organization, influencing the depreciation method applied.

Equipment Account

An account on a company's balance sheet that reports the value of the company's ownership in equipment, adjusted for depreciation.

Non-Controlling Interest

A shareholder or equity interest in a corporation that is not large or significant enough to confer control over the business.

Entity Method

An accounting approach used in preparing consolidated financial statements where investments in subsidiaries are recorded at cost and adjusted for the parent company's share of the subsidiaries' post-acquisition profits or losses.