A Favourable Direct-Labour Efficiency Variance Is Created When

question 81

Multiple Choice

A favourable direct-labour efficiency variance is created when:

• A)actual labour hours worked exceed standard hours allowed.
• B)actual hours worked are less than standard hours allowed.
• C)actual wages paid are less than amounts that should have been paid.
• D)actual units produced exceed budgeted production levels.
• E)actual units produced exceed standard hours allowed.

---

Definitions:

Promoter

A person or entity that initiates the establishment of a company by finding investors, preparing contracts, and registering the business.

Reimburse

To reimburse is to pay back or compensate someone for expenses they have incurred.

Incorporation

The process of legally declaring a corporate entity as separate from its owners.

Mandatory Dividend Provisions

Rules or clauses within a company's charter or bylaws that require the company to pay dividends to its shareholders under certain conditions.