If the Actual Labor Hours Worked Exceed the Standard Labor

question 38

Multiple Choice

If the actual labor hours worked exceed the standard labor hours allowed, what type of variance will occur?

• A) Favorable labor efficiency variance.
• B) Favorable labor rate variance.
• C) Unfavorable labor efficiency variance.
• D) Unfavorable labor rate variance.

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Definitions:

Public Corporations

Companies that have issued securities through an initial public offering (IPO) and are traded on at least one stock exchange or in over-the-counter markets.

Domestic Corporations

Companies that are registered and operate within the legal boundaries of a country, subject to its governance and taxation.

Nonstock Companies

Companies that do not issue stock as part of their ownership structure; often structured as cooperatives or mutual companies.

Par Preferred Stock

Preferred shares of a corporation with a nominal face value, which typically dictates dividends and liquidation claims.