A five-percent wage increase for all factory employees would affect which of the following variances?
A)direct materials price variance
B)direct labor rate variance
C)direct labor efficiency variance
D)variable manufacturing overhead efficiency variance

Question

Quizplus · Accepted Answer

A five-percent wage increase for all factory employees would only affect the direct labor rate variance, as this variance is specifically concerned with changes in the rate paid to employees for their labor. The other variances listed are not impacted by changes in employee wages.

A Five-Percent Wage Increase for All Factory Employees Would Affect