The Standard Number of Direct Labor Hours Used in Calculating

question 46

Multiple Choice

The standard number of direct labor hours used in calculating the direct labor efficiency variance is based on

• A)the static budget.
• B)the actual number of finished units produced.
• C)the number of units in the production budget.
• D)the number of units sold.

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Definitions:

Product Design

The process of creating a new product to be sold by a business to its customers, focusing on specifications, aesthetics, and usability.

Planning

The process of setting goals, developing strategies, and outlining tasks and schedules to achieve the goals.

Product/Service Quality

The measure of excellence or state of being free from defects, deficiencies, and significant variations, assessed by comparing a product or service to established standards.

Mary Parker Follett

A pioneering theorist in organizational behavior and management who emphasized the importance of integrative conflict resolution and human relations.