6 easy accounting questions! I give thumbs up.

If the actual hours worked is higher than the standard hours allowed and the actual rate of pay is lower than the standard rate, there will be a Select) v spending variance Select favorable either a favorable or unfavorable unfavorable Your new equipment operator is working out well! Although you had to pay $2 more per hour than your previous operator, she is more efficient, bringing the actual output to seven pieces per hour from the standard of five pieces per hour! Great news! You will show O A favorable spending variance An unfavorable rate variance and a favorable efficiency variance An unfavorable efficiency variance and a favorable rate variance. Josh is the production supervisor for XYZ Company. He has been struggling with turnover, which has increased his labor hours. How can you help him? Replace employees who cannot keep up with the pace of the production process. Set goals that are unattainable so that employees work faster Discuss staff training and morale issues to make sure all statt feel like they have the skills and tools necessary to complete their jobs. Previous Next An overhead efficiency variance occurs when The actual number of hours needed to manufacture the product is either more on less than the standard budgeted number of hours. The actual number of hours needed to manufacture is less than the standard budgeted number of houts. The actual number of hours needed to manufacture is more than the standard budgeted number of hours The spending variance is the most important number to look at when we examine manufacturing overhead because This is the culmination of both the rate and efficiency variances, so it gives the total picture of changes to either component of the rate is higher than budgeted, our spending variance will be unfavorable If efficiency is favorable, we will have a favorable spending variance. If material costs rise due to a market increase, overall variable overhead will Need to be reviewed and revised, if the cost cannot be offset by increased efficiency in the production process O Go up in relation to the cost increase O Need to be reviewed to reduce the labor and waste to bring the total to the budgeted level