Which of the following is not a reason wage rates may vary from the standard?
A)To get a job done on time, a manager may need to use more highly skilled, higher-paid workers than prescribed by the standard.
B)If a manager must pay overtime to meet production requirements, a direct labor rate variance will likely result.
C)At the time standards are set, managers generally do not have a good idea of the wage rates they will need to pay.
D)Managers may request a raise for efficient employees.

Question

Quizplus · Accepted Answer

Wage rates may vary due to several reasons such as differences in skill level, labor market conditions, employee experience, and performance level. However, at the time standards are set, wage rates are generally taken into consideration to determine the standard labor rate. Therefore, option C is not a valid reason as managers typically have a good idea of the wage rates they will need to pay while setting the standards.

Which of the Following Is Not a Reason Wage Rates