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 of the following variances may be directly impacted?
A)Direct materials price variance
B)Direct materials quantity variance
C)Direct labor efficiency variance
D)Direct labor rate variance

Question

Quizplus · Accepted Answer

The high unemployment rate allows the company to pay new employees a lower wage per hour, which directly impacts the direct labor rate variance.

The Unemployment Rate Is High in the City in Which