abor variance analysis focuses on:a.Variations in the quantity of labor hours usedb.Variations in the wage ratec.Variations in the material costd.Variations in the overhead costsClear my choice
Question
abor variance analysis focuses on:a.Variations in the quantity of labor hours usedb.Variations in the wage ratec.Variations in the material costd.Variations in the overhead costsClear my choice
Solution
To answer the question step by step:
- Labor variance analysis focuses on variations in the quantity of labor hours used.
- It also focuses on variations in the wage rate.
- However, labor variance analysis does not specifically focus on variations in the material cost.
- Similarly, it does not specifically focus on variations in the overhead costs.
Therefore, the correct answer is a. Variations in the quantity of labor hours used and b. Variations in the wage rate.
Similar Questions
A direct labor budget variance is further analyzed into a direct labor (price/rate/spending) variance and a direct labor (usage/efficiency) variance.
The labor rate variance measures the productivity of direct labor.
When machine-hours are used as an overhead cost-allocation base, the most likely cause of a favorable variable overhead spending variance is ________.Group of answer choicesa decline in the cost of energythe production manager scheduled jobs efficientlyabnormally high demand for a productabnormal high rate of machine breakdownsNone of the given choices is correct
Compute the direct labor rate and efficiency variances.
The variable overhead efficiency variance compares the hours times the standard rate with the standard hours allowed for the actual output times the rate
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