Question 3 An unfavorable efficiency variance for direct manufacturing labor might indicate that there is unexpected increase in direct labor rates work is scheduled inefficiently lower-quality materials were purchased more higher-skilled workers were scheduled than planned

Question 3 An unfavorable efficiency variance for direct manufacturing labor might indicate that there is unexpected increase in direct labor rates work is scheduled inefficiently lower-quality materials were purchased more higher-skilled workers were scheduled than planned

Name: Question 3An unfavorable efficiency variance for direct manufacturing
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Description: Question 3An unfavorable efficiency variance for direct manufacturing labor might indicate that,there is unexpected increase in direct labor rateswork is scheduled inefficientlylower-quality materials were purchasedmore higher-skilled workers were s

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 9MC: What are some reasons for a material quantity variance? A. building rental charges increase B. labor...

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Similar questions

Identity several causes of an unfavorable labor rate variance.
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
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 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
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
QUESTION 6 Which of the following may be the likely reason for a favorable direct labor rate variance? O overestimated standard labor cost, O changes to the product specification which reduced manufacturing time. O reduction in direct labor costs due to a strike in the factory. O overestimated standard labor time per unit.
Question b Which of the following is a possible cause of an unfavourable materials quantity variance? • Use of inferior raw materials • Raw materials price increase • Use of a higher grade of labour than allowed for in the standard • Raw materials price decrease.
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
Q.Describe three reasons for an unfavorable direct manufacturing labor efficiency variance
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
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
Which of the following is the most likely explanation for an unfavorable materials usage variance and a favorable labor wage variance? a. The new labor contract increased wages. b. Higher quality materials were purchased, resulting in less waste. c. The company experience labor turnover and newer, less experienced workers were hired. d. A new supplier offered a lower price for materials.