SCENARIO 11-4

question 47

True/False

SCENARIO 11-4
Analysis of Variance 11-15
-True or False: Referring to Scenario 11-4, the test is valid only if the population of crop yields is
normally distributed for the 3 varieties.

---

Definitions:

Labor Efficiency Variance

The variance between the real hours spent working and the anticipated standard hours, times the standard rate of labor.

Actual Direct Labor Rate

The actual amount paid per hour to workers who are directly involved in the production of goods or services.

Labor Rate Variance

The difference between the actual cost of direct labor and the standard cost, indicating how well the company is managing its labor costs.

Direct Labor Standards

The expected amount of time and wage rate for workers to complete a unit of production.