Factory Labor Costs

question 172

Multiple Choice

Factory labor costs

• A) are accumulated in a control account.
• B) do not include pension costs.
• C) include vacation pay.
• D) are based on workers' net pay.

Analyze the impact of activity level variances on budgeted and actual performance.

Calculate and interpret net operating income based on flexible and planning budgets.

Distinguish between different types of variances (e.g., spending, activity, and overall revenue and spending variances).

Identify the factors that contribute to favorable (F) and unfavorable (U) variances.

---

Definitions:

Cocoa

A powder made from roasted and ground cacao seeds used in making chocolate and chocolate-based products.

Factory

A building or set of buildings where goods are manufactured or assembled chiefly by machine.

Ending Inventory

The cumulative worth of products on offer for sale when an accounting cycle ends.

Gross Margin

The gap between the income from sales and the expense of goods sold, represented as a proportion of sales income.