The Difference Between the Actual Labor Rate Multiplied by the Actual

question 212

Multiple Choice

The difference between the actual labor rate multiplied by the actual labor hours worked and the standard labor rate multiplied by the standard labor hours is the

• A) total labor variance.
• B) labor price variance.
• C) labor quantity variance.
• D) labor efficiency variance.

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Definitions:

Discount Period

The discount period is the timeframe during which a discount is offered for early payment on goods or services, often used to incentivize quicker payment by customers.

Sales Discounts

Reductions in the price of goods or services offered to customers to encourage prompt payment.

Accounts Receivable

The amount customers are required to pay to a company for already delivered services or products.

FOB Shipping Point

A term used in shipping agreements indicating the buyer is responsible for the goods and shipping costs as soon as they leave the seller's premises.