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Which of the following statements is true? If skilled workers with high hourly rates of pay are given duties that require little skill and call

Which of the following statements is true?

If skilled workers with high hourly rates of pay are given duties that require little skill and call for lower hourly rates of pay, this will result in a favorable labor rate variance.

1.) The standard labor rate per hour should not include any employment taxes.

2.) When less hours of labor time are necessary to complete a job than the standard allows, the labor efficiency variance is unfavorable.

A.) Only statement III is true.

B.) Both statements II and III are true.

C.) All of the statements are true.

D.) None of the statements are true.

The following labor standards have been established for a particular product:

Standard labor-hours per unit of output

10

hours

Standard labor rate

$ 18.00

per hour

The following data pertain to operations concerning the product for the last month:

Actual hours worked

10,000

hours

Actual total labor cost

$ 177,000

Actual output

990

units

What is the labor rate variance for the month?

A.) $3,000 F

B.) $2,970 U

C.) $3,000 F

D.) $2,970 F

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