Question
Unfavorable labor rate variances may occur as a result of Blank______.
Multiple select question.
work interruptions caused by faulty equipment
skilled workers being assigned to jobs requiring little skill
overtime premiums being charged to the direct labor account
unskilled workers being assigned to a task that requires a set of skills
Multiple select question.
work interruptions caused by faulty equipment
skilled workers being assigned to jobs requiring little skill
overtime premiums being charged to the direct labor account
unskilled workers being assigned to a task that requires a set of skills
Answers
GPT-4o mini
Unfavorable labor rate variances may occur as a result of:
1. **Skilled workers being assigned to jobs requiring little skill** - This can lead to higher wage costs than necessary for the level of work being performed.
2. **Overtime premiums being charged to the direct labor account** - Overtime pay is often higher than regular pay, which can increase the overall labor rate and create an unfavorable variance.
3. **Unskilled workers being assigned to a task that requires a set of skills** - If unskilled workers are unable to perform at the required level, it may result in inefficiencies and possibly necessitate hiring more expensive skilled labor.
While **work interruptions caused by faulty equipment** can lead to inefficiencies and increased overall labor costs, it does not directly lead to a labor rate variance in the same way the other options do. Therefore, it would not be included as a primary cause for unfavorable labor rate variances.
1. **Skilled workers being assigned to jobs requiring little skill** - This can lead to higher wage costs than necessary for the level of work being performed.
2. **Overtime premiums being charged to the direct labor account** - Overtime pay is often higher than regular pay, which can increase the overall labor rate and create an unfavorable variance.
3. **Unskilled workers being assigned to a task that requires a set of skills** - If unskilled workers are unable to perform at the required level, it may result in inefficiencies and possibly necessitate hiring more expensive skilled labor.
While **work interruptions caused by faulty equipment** can lead to inefficiencies and increased overall labor costs, it does not directly lead to a labor rate variance in the same way the other options do. Therefore, it would not be included as a primary cause for unfavorable labor rate variances.