If skilled, highly paid employees are used in jobs that are normally performed by unskilled, lower-paid employees, it will result in:
A) an unfavorable direct labor time variance.
B) a favorable variable overhead variance.
C) a favorable direct labor rate variance.
D) an unfavorable direct labor rate variance.

Question

Quizplus · Accepted Answer

Using skilled, highly paid employees for tasks normally done by unskilled, lower-paid workers will increase the hourly wage rate paid compared to the standard rate, resulting in an unfavorable direct labor rate variance.

If Skilled, Highly Paid Employees Are Used in Jobs That