Refer to the Information Provided for Executive Inc

question 85

Multiple Choice

Refer to the information provided for Executive Inc.What is the direct labor rate variance?

• A)$3,000 unfavorable
• B)$3,000 favorable
• C)$2,400 unfavorable
• D)$2,400 favorable

---

Definitions:

Budgeting

The process of creating a plan to spend your money, outlining an estimate of income and expenditures for a set period of time.

Planning Budget

A financial plan that estimates the income and expenditures for a future period, typically structured around a specific project or business operation.

Supplies Costs

Expenses for materials and items necessary for the maintenance and operation of a business.

Flexible Budget

A budget that adjusts or varies with changes in volume or activity levels, used for planning and control.