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.

---

Definitions:

Equity Method

A method of accounting for investments in which the investment is initially recorded at cost and subsequently adjusted for the investor’s share of the investee’s net income or losses and dividends received.

Significant Influence

It refers to the power to participate in the financial and operating policy decisions of an investee but not control those policies.

Trading Security

A financial asset that is bought and sold with the intention of generating profits from short-term fluctuations in its price.

Retained Earnings

Profits that a company has kept or retained rather than distributing to shareholders as dividends.