The Flexible Budget Breaks Down into the Rate and Efficiency

question 83

Essay

The flexible budget breaks down into the rate and efficiency variances for direct labor.
Required:
a.List two reasons why actual wage rates might differ from standard wage rates, resulting in a direct labor rate variance.
b.List two reasons why actual labor hours might differ from standard labor hours, resulting in a direct labor efficiency variance.

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Definitions:

Rectus Femoris

A muscle in the quadriceps group that extends the knee and flexes the thigh at the hip.

Anterior Aspect

Referring to the front view or portion of a structure relative to the body's standard anatomical position.

Intramuscular Injection

A method of delivering medication deep into the muscles, allowing for rapid absorption into the bloodstream.

Gluteus Maximus

The largest and most superficial of the three gluteal muscles, involved in the extension and outward rotation of the hip joint.