Which One of the Following Is the Difference Between the Actual

question 151

Multiple Choice

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

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

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Definitions:

Underapplied Manufacturing Overhead

A situation where the allocated manufacturing overhead costs are less than the actual overhead costs incurred, leading to an underestimation of product costs.

Overapplied Manufacturing Overhead

Refers to a situation where the estimated manufacturing overhead cost is more than the actual manufacturing overhead incurred during a period.

Debit

An accounting entry that increases an asset or expense or decreases a liability, equity, or revenue.

Credit

A financial term defining the ability to obtain goods or services before payment, based on the trust that payment will be made in the future.