BuyFindarrow_forward

Managerial Accounting: The Corners...

7th Edition
Maryanne M. Mowen + 2 others
ISBN: 9781337115773

Solutions

Chapter
Section
BuyFindarrow_forward

Managerial Accounting: The Corners...

7th Edition
Maryanne M. Mowen + 2 others
ISBN: 9781337115773
Textbook Problem
3 views

Responsibility for the labor rate variance typically is assigned to

  1. a. production.
  2. b. labor markets.
  3. c. personnel.
  4. d. labor unions.
  5. e. engineering.

To determine

Identify the department which is responsible for labor rate variance.

Explanation

Variance:

The amount obtained when actual cost is deducted from budgeted cost is known as variance. Variance is calculated to find whether the cost is over applied or under applied.

a.

Production department is responsible for the assignment of work to the laborers according to their skills. Labor rate variance occurs when average wage rate was considered as standard rate and skilled as well as highly paid laborers were made to work less skilled job. Therefore, option a is the correct answer.

b.

Labor markets are places where one can find laborers and hire them...

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

What methods are used?

Foundations of Business (MindTap Course List)

MATURITY RISK PREMIUM An investor in Treasury securities expects inflation to be 2.5% in Year 1,3.2% in Year 2,...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)