If the Hourly Wage Rate Actually Paid During January Is

question 45

Multiple Choice

If the hourly wage rate actually paid during January is higher than the standard rate,the result is:

• A)An unfavorable labor rate variance.
• B)A favorable labor rate variance.
• C)An unfavorable labor efficiency variance.
• D)A favorable total labor variance.

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Definitions:

Residual Value

the estimated value that an asset will have at the end of its useful life.

Straight-Line Method

A depreciation technique that allocates an equal portion of an asset’s initial cost to each year of its useful life.

Book Value

The net value of an asset calculated as total assets minus total liabilities, shown on the balance sheet.

Units-Of-Production Method

A depreciation method that allocates the cost of an asset over its useful life based on the amount of production or use during the period.