What Does a Credit Balance in a Direct Labour Efficiency

question 40

Multiple Choice

What does a credit balance in a direct labour efficiency variance account indicate?

• A) The average wage rate paid to direct labour employees was less than the standard rate.
• B) The standard hours allowed for the units produced were greater than actual direct labour hours used.
• C) The actual total direct labour costs incurred were less than standard direct labour costs allowed for the units produced.
• D) The number of units produced was less than the number of units budgeted for the period.

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Definitions:

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Mean Time Between Failures, a measure used to predict the reliability and durability of a product or system.

6-Sigma Standards

A set of techniques and tools for process improvement aimed at reducing the probability of defects and variability in manufacturing and business processes.

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A device used to initiate and control a sustained nuclear chain reaction, primarily for the generation of electricity or for research purposes.

Redundant Controls

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