A Favorable Efficiency Variance for Direct Manufacturing Labor Indicates That

question 61

Multiple Choice

A favorable efficiency variance for direct manufacturing labor indicates that ________.

• A) a lower wage rate than planned was paid for direct labor
• B) a higher wage rate than planned was paid for direct labor
• C) less direct manufacturing labor-hours were used during production than planned for actual output
• D) more direct manufacturing labor-hours were used during production than planned for actual output

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