A Review of Skilled Engineering Labor Rates and Variances at Kumisomo

question 17

Multiple Choice

A review of skilled engineering labor rates and variances at Kumisomo Industries revealed the following: Actual wage per hour was ¥15,000, as opposed to ¥13,000 planned. Actual labor hours per unit produced were 1.2 compared with 1.4 hours planned. If during a period 1,000 units were produced, which of the following is false?

• A)The DL wage rate variance is unfavorable.
• B)The DL wage rate variance is ¥2,400 favorable
• C)The DL efficiency variance is ¥26,000 favorable
• D)The DL efficiency variance may be random
• E)None of the above is false

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Definitions:

Nonlinear

Describes a process or relationship where a change in input does not lead to a proportional change in output, indicating a complex, non-proportional relationship between variables.

Negative Relation

A relationship between two variables where an increase in one variable is associated with a decrease in the other variable.

Time-Series Graph

A graphical representation showing how a variable changes over time.

Unemployment Rate

The share of the employment-seeking population in the labor force that currently does not have a job.