-The Above Figure Shows the Demand and Supply Curves for High-Skilled

question 329

Multiple Choice

-The above figure shows the demand and supply curves for high-skilled and low-skilled labor. The wage rate

• A) of high-skilled labor is $7.00 and of low-skilled labor is $6.00.
• B) of high-skilled labor is $9.00 and of low-skilled labor is $7.00.
• C) of high-skilled labor is $6.00 and of low-skilled labor is $4.00.
• D) of high-skilled labor is $9.00 and of low-skilled labor is $4.00.

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Definitions:

Direct Labor Rate Variance

The difference between the actual cost of direct labor and the standard cost, attributed to the difference in the hourly wage rate paid and the standard rate expected.

Direct Labor Costs

These are the salaries and wages paid to employees directly involved in producing a company's goods or services.

Controllable Variance

Controllable variance refers to the difference between actual and expected figures that can be influenced by the actions of managers.

Overhead Costs

General expenses related to the operation of a business that are not directly attributed to creating a product or service.