The Demand for Labor Is

question 189

Multiple Choice

The demand for labor is

• A) derived from the demand for the products it is used to produce.
• B) determined by the demand for consumer products.
• C) determined by the price of consumer products.
• D) all of the above.

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Definitions:

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred and the expected (standard) overhead based on the efficient use of resources.

Variable Overhead Rate Variance

The difference between the actual variable overhead costs incurred and the expected costs at the standard variable overhead rate.

Standard Variable Overhead Rate

A predetermined rate used in costing to allocate variable manufacturing overhead to individual units of production based on a standard amount of an allocation base, such as direct labor hours or machine hours.

Direct Labor-hours

A measure of the amount of time spent by workers who are directly involved in the manufacturing process.