The Formula to Compute Direct Labor Time Variance Is

question 123

Multiple Choice

The formula to compute direct labor time variance is:

• A) actual costs - standard costs.
• B) actual costs + standard costs.
• C) (actual hours × standard rate) - standard costs.
• D) actual costs - (actual hours × standard rate).

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Definitions:

Decrease in Demand

A downward shift in the demand curve, indicating that consumers now want to purchase less of a good at all price levels.

Purely Competitive Industry

An industry characterized by numerous small firms producing identical products where no single firm can influence market price.

Industry Contraction

A phase in the business cycle where there is a decrease in economic activity within a particular industry, often characterized by reduced output and employment.

Upward Sloping

A graphical representation indicating an increase in a variable as another variable increases, often seen in supply curves.