Which One of the Following Is Defined as the Difference

question 25

Multiple Choice

Which one of the following is defined as the difference between the actual hourly wage rate and the standard hourly wage rate, multiplied by the actual number of direct labor hours (DLHs) worked during a period?

• A) The total direct labor standard cost variance.
• B) The direct labor efficiency variance.
• C) The direct labor usage variance.
• D) The direct labor flexible-budget variance.
• E) The direct labor rate variance.

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Definitions:

Profit

The financial gain obtained when the revenue from business activities exceeds the expenses, costs, and taxes associated with sustaining the activity.

Top-Down Leadership

A leadership approach where decisions and policies are initiated by the upper levels of management and then cascaded down through the ranks.

Culture of the Organization

The shared norms, values, and practices that guide and shape behaviors and attitudes within a company or institution.

Incentives

Rewards or benefits offered to motivate individuals or groups to behave in a certain way or to achieve specific objectives.