Using More Direct Labor Hours for Units Produced Than the Amount

question 104

Multiple Choice

Using more direct labor hours for units produced than the amount allowed by the standard results in:

• A)An unfavorable total labor variance.
• B)An unfavorable labor efficiency variance,regardless of the wage rate paid to employees.
• C)An unfavorable labor efficiency variance only if the wage rate is higher than standard cost allowed.
• D)A favorable labor rate variance,because the hourly wage rate is automatically reduced when workers operate less efficiently.

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Definitions:

Position Analysis Questionnaire

A standardized tool used by organizations to evaluate job characteristics and determine what is required of employees in various roles.

Job Specification

A detailed description of the qualifications, skills, and experience required for a specific job role.

Knowledge, Skills, Abilities

Refers to the competencies required to perform a job effectively, including acquired information, proficiencies, and natural capabilities.

Reduction Strategy

A plan implemented to decrease resources, expenses, or workforce in an organization for efficiency or cost-saving purposes.