An Unfavorable Direct Labor Efficiency Variance Could Be Caused By

question 22

Multiple Choice

An unfavorable direct labor efficiency variance could be caused by:

• A)an unfavorable materials quantity variance.
• B)an unfavorable variable overhead rate variance.
• C)a favorable materials quantity variance.
• D)a favorable variable overhead rate variance.

---

Definitions:

Share Purchase

The act of buying ownership stakes in a company, represented by shares, indicating partial ownership.

Corporate Security

Strategies and measures adopted by a corporation to protect its assets, intellectual property, and employees.

Fixed Charges

Fixed charges are ongoing, regular expenses that a company or individual must pay, such as loans, rent, and utility bills, which do not vary with business volume or activity.

Floating Charges

A security interest over a pool of changing assets of a company which "floats" until it is converted into a fixed charge, generally upon the occurrence of a default event.