The Direct Labor Usage Variance Is Calculated As

question 52

Multiple Choice

The direct labor usage variance is calculated as:

• A)(Standard Price - Actual Price)x Actual Quantity
• B)(Actual Price - Standard Price)x Standard Quantity Allowed
• C)(Standard Quantity Allowed - Actual Quantity)x Actual Price
• D)(Actual Quantity - Standard Quantity Allowed)x Standard Price

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Definitions:

Restrictive Covenants

Clauses in contracts that impose limitations or conditions on the actions of parties, commonly found in lending agreements to protect the lender.

Indenture

A formal legal agreement, contract, or document, especially one relating to a loan or bond issue.

Debenture

An unsecured bond.

Sinking Fund

A savings fund accumulated over time for the purpose of paying off debt or replacing a large expense in the future.