If a Control Chart Is Used Correctly,and the Necessary Corrective

question 29

Multiple Choice

If a control chart is used correctly,and the necessary corrective actions are taken,as the control limits get ____________,the potential quality of the product _____________.

• A)Looser,increases
• B)Tighter,decreases
• C)Tighter,increases
• D)None of these

---

Definitions:

Actual Direct Labor Cost

The total expense of labor directly involved in the production of goods or services, as it actually occurred.

Labor Rate Variance

Labor rate variance measures the difference between the actual labor costs incurred and the expected (or standard) labor costs, indicating discrepancies in wage rates or labor efficiency.

Actual Direct Labor Rate

The actual wage rate paid to workers, as opposed to the expected or standard rate used in budgeting or costing.

Direct Labor-hours

The total hours of labor directly involved in the manufacturing process of a product.