Which of the Following Is Not Used in Calculating the Direct

question 156

Multiple Choice

Which of the following is not used in calculating the direct labor efficiency variance?

• A)The actual quantity of direct labor hours used
• B)The standard quantity of direct labor hours allowed for actual production
• C)The actual wage rate
• D)The standard wage rate

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Definitions:

Total Fixed Costs

Financial obligations that do not fluctuate with the amount of goods made or sold, for instance, rent, salaries, and insurance coverage.

Unit Fixed Costs

Unit Fixed Costs are the costs that do not change with the volume of production and are allocated per unit based on the total production quantity.

Total Variable Cost

Charges that fluctuate in direct relation to the volume of production or output.

Merchandising Company

A Merchandising Company is a business that purchases finished products and sells them at a profit, without altering the products themselves.