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A Review of Skilled Engineering Labor Rates and Variances at Kumisomo

Question 17

Multiple Choice

A review of skilled engineering labor rates and variances at Kumisomo Industries revealed the following: Actual wage per hour was ¥15,000, as opposed to ¥13,000 planned. Actual labor hours per unit produced were 1.2 compared with 1.4 hours planned. If during a period 1,000 units were produced, which of the following is false?


A) The DL wage rate variance is unfavorable.
B) The DL wage rate variance is ¥2,400 favorable
C) The DL efficiency variance is ¥26,000 favorable
D) The DL efficiency variance may be random
E) None of the above is false

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