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Overtime premium and labor rate variance

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Indicate whether the following statement is true or false, then support your view.

Overtime premium (i.e., the 0.5 x hourly rate of workers, or 1.0 x hourly rate for double-time) will be a factor in measuring the labor rate variance.

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This solution discusses overtime premium as a factor in measuring labor rate variance.

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The labor rate variance is the difference between the planned value of labor in production as an input compared to the actual value of labor used in production. So, if because of ...

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