If the Actual Direct Labor Hours Spent Producing a Commodity

question 135

Multiple Choice

If the actual direct labor hours spent producing a commodity differ from the standard hours, the variance is termed:

• A) time variance.
• B) price variance.
• C) quantity variance.
• D) rate variance.

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Definitions:

Ratify

To formally approve an agreement or treaty, making its provisions officially valid and binding.

Principal

The main party to a transaction, such as a borrower in a loan agreement or a buyer in a sales contract.

Contract

An enforceable pact by law that involves two or more individuals or groups.

Legal Capacity

The capability recognized by law for a person to act in a particular role or enter into a contract, often related to age and mental soundness.