Which One of the Following Is Defined as the Difference

question 23

Multiple Choice

Which one of the following is defined as the difference between the actual direct labor hours worked and the standard direct labor hours allowed for the units manufactured, multiplied by the standard hourly wage rate per hour?

• A) The direct labor price variance.
• B) The direct labor efficiency variance.
• C) The total direct labor standard cost variance.
• D) The direct labor flexible-budget variance.
• E) The direct labor operating-income variance.

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Definitions:

Expenses

Costs incurred in the process of earning revenue, typically categorized as fixed or variable costs.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, leading to net income or loss.

Owner's Equity

The residual interest in the assets of a business after deducting liabilities, representing the ownership interest of the shareholders or owner.

Revenues

The total income generated from the sale of goods or services related to a company’s primary operations.