labour rate variances can be the result of
A) the use of an average wage rate
B) unexpected overtime
C) seniority mix changes
D) all of the above

Question

Quizplus · Accepted Answer

All of the given options can contribute to labour rate variances. Using an average wage rate can cause variances when actual wage rates of employees differ from the average rate. Unexpected overtime can lead to increased labour costs, causing a negative labour rate variance. Seniority mix changes can result in a shift towards higher-paid employees, leading to an increase in labour costs and resulting in a negative variance. Hence, all the options (A, B, and C) can cause labour rate variances.

Labour Rate Variances Can Be the Result of