Deductions for AGI May Be Located

question 9

Multiple Choice

Deductions for AGI may be located

• A)on the front page of Form 1040.
• B)on Schedule C as a deduction.
• C)on Schedule E as a deduction.
• D)All of the above are true.

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Definitions:

Labor Efficiency Variance

The difference between the actual hours worked to produce goods and the standard hours expected, multiplied by the standard labor rate.

Direct Labor Standards

The benchmarks set for the cost and amount of direct labor needed to produce a product or service, used for budgeting and performance evaluations.

Actual Direct Labor Cost

The total expense of labor directly involved in the manufacturing of a product, excluding indirect costs such as supervisory personnel.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected (or standard) variable overhead based on the actual level of activity.