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.

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Definitions:

Straight Commission

A compensation structure where employees are paid solely based on the sales they generate, with no fixed salary.

Free Rider Effect

A phenomenon where some individuals benefit from resources or services without contributing to the cost, often seen in team or group settings.

Team Incentives

Reward systems designed to motivate team performance by offering benefits or compensation based on achieving collective goals or benchmarks.

Piece Rates

A payment method where workers are paid a fixed rate for each unit of production completed, encouraging productivity and efficiency.