Examlex
________ are subject to validity problems due to evaluator bias.
Direct Labor
The cost of wage-earning employees who are directly involved in the production of goods or services, such as assembly line workers.
Direct Labor Rate Variance
The difference between the actual cost of direct labor and the standard cost, demonstrating how actual labor costs differ from budgeted amounts.
Materials Price Variance
The difference between the actual cost of materials used in production and the standard cost, multiplied by the quantity of materials used.
Fixed Manufacturing Overhead
The portion of manufacturing overhead costs that do not vary with production volume, such as rent and salaries of supervisors.
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