nfavorable labor rate variances may occur as a result of Blank______.Multiple select question.unskilled workers being assigned to a task that requires a set of skillsskilled workers being assigned to jobs requiring little skillwork interruptions caused by faulty equipmentovertime premiums being charged to the direct labor account
Question
nfavorable labor rate variances may occur as a result of Blank______.Multiple select question.unskilled workers being assigned to a task that requires a set of skillsskilled workers being assigned to jobs requiring little skillwork interruptions caused by faulty equipmentovertime premiums being charged to the direct labor account
Solution
Unfavorable labor rate variances may occur as a result of:
-
Unskilled workers being assigned to a task that requires a set of skills: If unskilled workers are assigned to tasks that require specific skills, they may take longer to complete the task or may need additional training, both of which can lead to increased labor costs.
-
Skilled workers being assigned to jobs requiring little skill: If skilled workers are assigned to tasks that do not utilize their skills, the company is not making efficient use of their labor. The higher wages paid to skilled workers would result in an unfavorable labor rate variance.
-
Work interruptions caused by faulty equipment: If work is frequently interrupted due to equipment issues, this can lead to inefficiencies and increased labor costs. Workers may be paid for time when they are not able to be productive, leading to an unfavorable labor rate variance.
-
Overtime premiums being charged to the direct labor account: If a significant amount of overtime is required, this can greatly increase labor costs. Overtime is typically paid at a premium rate, so this would result in an unfavorable labor rate variance.
Similar Questions
When the workforce is fixed in the short term, labor efficiency variances Blank______.Multiple choice question.need to be monitored carefullycannot be calculatedmay need to be eliminated
Which of the following statements are true? Multiple select question.A favorable labor rate variance is always favorable for a company.How production supervisors use direct labor workers can lead to labor rate variances.Overtime premiums can cause an unfavorable labor rate variance.Assigning highly skilled, highly paid workers to low skill, low pay level jobs will cause a favorable labor rate variance.
When machine-hours are used as a cost-allocation base, the item most likely to contribute to a favorable variable overhead efficiency variance is ________.Group of answer choicesNone of the given choices is correctabnormally high demand for the productadditional machineryskilled workers who handle the machinesabnormal high rate of machine breakdowns
The standard rate per hour includes Blank______. Multiple select question.fringe benefitsthe direct labor rate per houremployment taxesemployee-paid union dues
Multiple Select QuestionSelect all that applyWhich production variances are due to the difference between the standard and actual quantities?Multiple select question.Raw materials usage varianceVariable overhead spending varianceVariable overhead efficiency varianceDirect labor rate varianceRaw materials price varianceDirect labor efficiency variance
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.