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:

Debris

Debris refers to scattered pieces of waste or remains. In a biological context, it often refers to cell debris resulting from cell death or tissue damage.

Bacteria

Microscopic, single-celled organisms that exist in various environments, including soil, water, and as symbionts or pathogens in organisms.

Concentration Gradient

The gradual difference in the concentration of solutes in a solution between two regions.

Carrier Molecule

refers to a molecule that transports substances across a cell membrane, either by passive or active transport mechanisms.