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A Company Receives an Unusually High Number of Orders in a Month

Question 120

Multiple Choice

A company receives an unusually high number of orders in a month. To produce all of the orders within the scheduled dates of delivery, the company pays employees an extra $8 per hour for every hour of overtime the employees work. Which variance would be directly impacted?


A) Materials price variance
B) Materials quantity variance
C) Labor efficiency variance
D) Labor rate variance

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