Which of the Following Accurately Describes the Account Type and the Normal

question 92

Multiple Choice

Which of the following accurately describes the account type and the normal balance of the Accumulated Depreciation account?

• A)Contra-expense account, credit balance
• B)Liability account, credit balance
• C)Contra-asset account, credit balance
• D)Expense account, debit balance

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Definitions:

Direct Labor Rate Variance

The difference between the actual costs of labor and the expected (or standard) costs, based on the hourly wage rates times the number of hours worked.

Direct Labor Time Variance

The difference between the actual hours worked by employees at the standard rate and the expected hours at the standard rate, for manufacturing a product.

Total Cost Variance

The difference between the budgeted or standard cost of production and the actual cost incurred.

Direct Materials Price Variance

The difference between the actual cost of direct materials used in production and the standard cost, indicating cost management efficiency.