A Debit Balance in the Direct Labor Efficiency Variance Account

question 126

Multiple Choice

A debit balance in the direct labor efficiency variance account indicates that

• A) standard hours exceed actual hours.
• B) actual hours exceed standard hours.
• C) standard rate and standard hours exceed actual rate and actual hours.
• D) actual rate and actual hours exceed standard rate and standard hours.

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Definitions:

Saving

The act of not consuming all of one's income and instead holding onto it for future investments or expenditure needs.

Disposable Income

The amount of money available to households after paying income taxes, which can be spent on necessities, savings, or leisure activities.

Consumption

The use of goods and services by households or individuals.

Disposable Income

Resources earmarked for household financial activities in saving and spending following income tax calculations.