An Unfavorable Labor Rate Variance Could Most Likely Result from All

question 33

Multiple Choice

An unfavorable labor rate variance could most likely result from all of the following except:

• A)Producing at levels of output that exceed normal output levels.
• B)Using highly skilled laborers to perform tasks normally performed by unskilled laborers.
• C)Having laborers work excessive overtime hours.
• D)Using outdated standard cost figures.

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Definitions:

Elastic Demand

Describes a situation where the quantity demanded of a good or service significantly changes in response to changes in its price.

High Tariffs

Elevated taxes imposed on imported goods and services to protect domestic industries or to generate revenue.

Unionized Sectors

Industries or sectors where workers are members of a union, which negotiates wages, working conditions, and other employment terms on their behalf.

Inflation

The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.