Question 1Select ALL the possible causes of an unfavorable direct labor rate variance.Talk of concessions by the union to reduce wages in the future have negatively impacted employee motivation and moraleO Inadequate training of assembly workersO The production manager uses lower-skilled workers to save labor costsThe cost of employer-provided health care for assembly workers has increasedO Poor scheduling requires a rush order of materialsO The cost of electricity has increased due to the recent tariff on fossil fuelsThe cost of indirect materials has increased due to supply chain issuesDue to the late delivery of materials, the assembly workers had to work overtime to finish the job on time.The purchasing manager purchased low quality materials to save on materials costs.OA senior level carpenter had to fill in for a beginner level carpenter because he was out sick.

Name: Question 1Select ALL the possible causes of an unfavorable direct lab
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Description: Question 1Select ALL the possible causes of an unfavorable direct labor rate variance.Talk of concessions by the union to reduce wages in the future have negatively impacted employee motivation and moraleO Inadequate training of assembly workersO Th

The direct labor rate variance is a measure that compares the actual labor rate paid to workers with…

Business

Accounting

Select ALL the possible causes of an unfavorable direct labor rate variance. Talk of concessions by the union to reduce wages in the future have negatively impacted employee motivation and morale Inadequate training of assembly workers The production manager uses lower-skilled workers to save labor costs The cost of employer-provided health care for assembly workers has increased Poor scheduling requires a rush order of materials The cost of electricity has increased due to the recent tariff on fossil fuels The cost of indirect materials has increased due to supply chain issues Due to the late delivery of materials, the assembly workers had to work overtime to finish the job on time. The purchasing manager purchased low quality materials to save on materials costs. A senior level carpenter had to fill in for a beginner level carpenter because he was out sick.

Select ALL the possible causes of an unfavorable direct labor rate variance. Talk of concessions by the union to reduce wages in the future have negatively impacted employee motivation and morale Inadequate training of assembly workers The production manager uses lower-skilled workers to save labor costs The cost of employer-provided health care for assembly workers has increased Poor scheduling requires a rush order of materials The cost of electricity has increased due to the recent tariff on fossil fuels The cost of indirect materials has increased due to supply chain issues Due to the late delivery of materials, the assembly workers had to work overtime to finish the job on time. The purchasing manager purchased low quality materials to save on materials costs. A senior level carpenter had to fill in for a beginner level carpenter because he was out sick.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter13: Lean Manufacturing And Activity Analysis

Section: Chapter Questions

Problem 11E

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Similar questions

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 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
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
What are some possible reasons for a direct labor time variance? A. utility usage decrease B. less qualified workers C. office supplies spending D. sales decline
Which of the following would produce a labor rate variance? Multiple Choice Use of persons with high hourly wage rates in tasks that call for low hourly wage rates. An unfavorable variable overhead rate variance. Excessive number of hours worked in completing a job Poor quality material causing breakage and work interruptions.
2. What are some possible drawbacks to using standard costs that Sarah might consider? a. Standards limit operating improvements because employees may be discouraged from improving beyond the standards. b. Standards may become “stale” in a dynamic manufacturing environment. c. Employees may focus only on efficiency improvement and their own operations rather than considering the larger objectives of the organization. d. Since standards are impossible to attain, they are a distraction from the work at hand. e. Since standards never change, they do not reflect reality.
2. What are some possible drawbacks to using standard costs that Sarah might consider? a. Standards limit operating improvements because employees may be discouraged from improving beyond the standards. b. Standards may become “stale” in a dynamic manufacturing environment. c. Employees may focus only on efficiency improvement and their own operations rather than considering the larger objectives of the organization. d. Since standards are impossible to attain, they are a distraction from the work at hand. e. Since standards never change, they do not reflect reality. Answers a, b and c b, c and d c, d and e a, d and e b, d and e
Question A7 Which of the following could not be the explanation for a FAVOURABLE labour efficiency variance in isolation A A higher grade of staff was used than originally planned B A new more efficient machine was purchased increasing the hourly output of units C A training course introduced a new more efficient process that staff could incorporate in production D A decrease in the selling price led to an increase in demand for the product
Which of the following may not be the reason for a change in gross profit to occur? Increase in salary of clerks in the administrative office of the company customers Increase of spoilage in materials in the production Change of product mixed from budgeted as compared to actual Changes in wage rates of employees in the factory
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
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.
An adverse labour efficiency variance together with a favourable labour rate variance could suggest that? a) The business is paying a higher hourly rate than standardb) More products are being made per hourc) Less labour hours are needed to make the same amount of output d) Less skilled staff are being used in production