Answer the Question on the Basis of the Following Table

question 29

Multiple Choice

Answer the question on the basis of the following table for a commercial bank or thrift: Refer to row 2 in the table.The number appropriate for space X is:

• A) $20,000.
• B) $60,000.
• C) $200,000.
• D) $100,000.

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Definitions:

Direct Labor Efficiency Variance

The difference between the actual hours of direct labor used and the standard hours expected for the production achieved.

Direct Labor Rate Variance

A financial metric used to measure the difference between the actual hourly wage paid to workers and the expected (or standard) wage rate for a specific period.

Standard Direct Labor Cost

The predetermined cost of labor assigned directly to the production of goods, based on estimated time and wage rates.

Total Overhead Variance

The difference between the actual overhead incurred and the overhead allocated to production over a period.