The AFL Originally Was a Federation of Craft Unions That

question 14

Multiple Choice

The AFL originally was a federation of craft unions that did not attempt to organize industrial unions. The main reason for this strategy was that

• A) industrial unions were illegal until the passage of the Taft-Hartley Act in 1947.
• B) the leaders of the AFL believed that the skilled workers represented by craft unions would have better bargaining power than unskilled workers.
• C) craft unions had more political clout than industrial unions.
• D) most industrial unions had supported the Knights of Labor in a dispute with the AFL during the 1880s.

Compute cost of goods manufactured and cost of goods sold.

Differentiate between financial and managerial accounting.

Distinguish between line and staff departments.

Understand the concept of decision-making in managerial accounting.

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Definitions:

Variable Overhead Efficiency Variance

The difference between the standard cost of variable overhead allocated to production and the actual variable overhead incurred, based on the efficient use of the allocation base, such as labor-hours.

Standard Activity

A benchmark level of activity or performance against which actual outcomes can be measured.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead to products or job orders, calculated before the period begins based on expected costs and activity levels.

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours expected for the work performed, multiplied by the standard hourly labor rate, indicating efficiency in labor use.