Q7: Which of the following would produce a labour rate variance? a) Poor quality materials causing breakage and work interruptions. b) Excessive number of hours worked in completing a job. c) Use of persons with high hourly rates in tasks that call for low hourly rates. d) An unfavourable variable overhead rate variance. 08: Which of the following statements is TRUE? a) Managers attempt to maintain unfavourable variances b) A favourable variance always benefits a company c) Favourable variances are typically not preferred by management d) A favourable variance is not always beneficial for an organization