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Suppose the Actual Labour Rate Exceeds the Standard Labour Rate

Question 111

Multiple Choice

Suppose the actual labour rate exceeds the standard labour rate, and the actual labour hours exceed the number of hours allowed. What would be the labour rate variance and labour efficiency variance? Labour Rate Labour Efficiency
Variance Variance


A) favourable favourable
B) favourable unfavourable
C) unfavourable favourable
D) unfavourable unfavourable

Correct Answer:

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