If the Wage Rate Paid Per Hour Differs from the Standard

question 92

Multiple Choice

If the wage rate paid per hour differs from the standard wage rate per hour for direct labor, the variance is termed:

• A) variable variance.
• B) rate variance.
• C) quantity variance.
• D) volume variance.

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Definitions:

Master Budget

A comprehensive financial planning document that includes all of the subsidiary budgets within an organization, projecting its financial activities for the period.

Raw Materials Production Needs

The quantity and type of raw materials required to meet production schedules for finished goods.

Finished Goods

Products that have completed the manufacturing process but have not yet been sold or distributed to the end consumer.

Raw Materials Cost

The expense associated with the raw materials consumed in producing a finished product.