Belle Manufacturing has an unfavorable direct labor rate variance. Which of the following would be the most likely reason for this variance? * The company used lower-paid workers than they had expected. Employees took a longer amount of time to produce the product than expected. The company gave employees an unexpected raise due to union negotiations. Employees used more
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Belle Manufacturing has an unfavorable direct labor rate variance. Which of the following would be the most likely reason for this variance? *
The company used lower-paid workers than they had expected.
Employees took a longer amount of time to produce the product than expected.
The company gave employees an unexpected raise due to union negotiations.
Employees used more direct materials in the production process than expected.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
