91 a rate variance for direct labor measures how well a company keeps unit prices of 4310267
91) A rate variance for direct labor measures how well a company keeps unit prices of labor inputs within standards.
92) If the standard quantity allowed for direct labor is less than the actual quantity used, the efficiency variance is favorable.
93) Which variance is directly impacted if the employees who build the product go on strike and temporary workers who are slower and not as skilled are hired?
A) Materials price variance
B) Materials quantity variance
C) Labor efficiency variance
D) Labor rate variance
94) How is the direct labor rate variance calculated?
A) The difference between the standard labor rate and the actual labor rate multiplied by the actual labor hours used
B) The difference between the standard labor rate and the actual labor rate multiplied by the standard allowable hours
C) The difference between the standard labor hours and the allowable labor hours
D) The difference between the standard labor rate and the actual labor rate
95) How is the direct labor efficiency variance calculated?
A) The difference between the standard labor hours allowed and the actual labor hours used multiplied by the actual labor rate.
B) The difference between the standard labor hours allowed and the actual labor hours used multiplied by the standard labor rate
C) The difference between the standard labor hours and the actual labor hours used.
D) The difference between the standard labor rate and the actual labor rate.
96) The direct labor flexible budget variance can be divided into two variances:
A) rate variance and price variance.
B) price variance and usage variance.
C) rate variance and efficiency variance.
D) price variance and efficiency variance.
97) A favorable direct labor efficiency variance might indicate that
A) higher skilled workers were used that performed the task slower than expected.
B) higher skilled workers were used that performed the task faster than expected.
C) lower skilled workers were paid a higher wage than expected.
D) lower skilled workers were paid a lower wage than expected.
98) The unemployment rate is high in the city in which a company has a factory. The company finds that they are able to pay new employees a lower wage per hour than when the unemployment rate was lower a year ago. Which variance would be directly impacted?
A) Materials price variance
B) Materials quantity variance
C) Labor efficiency variance
D) Labor rate variance
99) A company receives an unusually high number of orders in a month. To produce all of the orders within the scheduled dates of delivery, the company pays employees an extra $8 per hour for every hour of overtime the employees work. Which variance would be directly impacted?
A) Materials price variance
B) Materials quantity variance
C) Labor efficiency variance
D) Labor rate variance
100) An unfavorable direct labor rate variance indicates which of the following?
A) Both actual quantity and actual cost of direct labor hours exceeded standard quantity and standard cost of hours for actual output.
B) The actual quantity of direct labor hours worked exceeded the standard quantity of hours for actual output.
C) The actual direct labor cost per hour exceeded the standard direct labor cost per hour for actual quantity of direct labor hours.
D