The actual wage rate is used in determining the labor rate variance. a. The actual wage rate is almost always different from the standard rate. a. A favorable labor efficiency variance could result from using higher quality materials that result in fewer inspections.
A favorable labor efficiency variance could result from using higher quality materials that result in fewer inspections. b. A favorable labor rate variance could result from lower wage workers quitting. c.
a. The variances for materials and labor are closed directly to Cost of Goods Sold regardless of materiality. b. If the materials price variance is material, it is prorated among Materials Inventory, Materials Usage Variance, Work in Process, and Finished Goods.
An average wage rate is chosen as the labor rate standard. d. The production manager controls the use of labor. e. The actual wage rate is used in determining the labor rate variance. a. The actual wage rate is almost always different from the standard rate. a.