None An unfavorable labor efficiency variance can result fromO an increase in workers' hourly ratesO high priced materialsO the payment of overtime premiumsO worker skill level

Labor efficiency and labor rate variances are key performance indicators used in cost accounting to…

Answered: An unfavorable labor efficiency…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 12MC: What are some possible reasons for a labor rate variance? A. hiring of less qualified workers B. an...

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Similar questions

Which of the following is a possible cause of an unfavorable labor rate variance? A. hiring too many workers B. hiring higher-quality workers at a higher wage C. making too many units D. purchasing too much material
Which of the following is a possible cause of an unfavorable labor efficiency variance? A. hiring substandard workers B. making too many Units C. buying higher-quality material D. paying too much for workers
What are some possible reasons for a labor rate variance? A.Hiring of less qualified workers B.An excess of material usage C.Material price increase D.Utilities usage change
Which of the following would produce a labor rate variance? Multiple Choice Use of persons with high hourly wage rates in tasks that call for low hourly wage rates. An unfavorable variable overhead rate variance. Excessive number of hours worked in completing a job Poor quality material causing breakage and work interruptions.
An unfavorable fixed overhead volume variance can be due to all of the following except a.employee inexperience b.an increase in utility costs c.machine breakdowns d.sales orders at a low level
Identity several causes of an unfavorable labor rate variance.
What are some reasons for a material quantity variance? A. building rental charges increase B. labor rate decreases C. more qualified workers D. labor efficiency increases
Why does a company use a standard costing system? A. to identify variances from actual cost that assist them in maintaining profits B. to identify nonperformers in the workplace C. to identify what vendors are unreliable D. to identify defective materials
Which of the following would produce a labor rate variance? A. Poor quality materials causing breakage and work interruptions.B. Use of persons with high hourly wage rates in tasks that call for low hourly wage rates.C. Excessive number of hours worked in completing a job.D. An unfavorable variable overhead spending variance.
Question 1 Select ALL the possible causes of an unfavorable direct labor rate variance. Talk of concessions by the union to reduce wages in the future have negatively impacted employee motivation and morale O Inadequate training of assembly workers O The production manager uses lower-skilled workers to save labor costs The cost of employer-provided health care for assembly workers has increased O Poor scheduling requires a rush order of materials O The cost of electricity has increased due to the recent tariff on fossil fuels The cost of indirect materials has increased due to supply chain issues Due to the late delivery of materials, the assembly workers had to work overtime to finish the job on time. The purchasing manager purchased low quality materials to save on materials costs. OA senior level carpenter had to fill in for a beginner level carpenter because he was out sick.
Which one of the following may account for an adverse labour efficiency variance? a. Using higher grade materials leading to lower wastage rates O b. Change in labour-market conditions between the setting of the standard and the actual event O c. Higher purchase cost of raw materials d. Using a higher grade of worker than was planned Oe. Poor supervision
TRUE OR FALSE Production volume variance appears whenever actual production deviates from the expected volume of production used in computing the fixed factory overhead.

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An unfavorable labor efficiency variance can result from O an increase in workers' hourly rates O high priced materials O the payment of overtime premiums O worker skill level