The Total Direct Labor Variance Is the Sum of the Direct

question 153

True/False

The total direct labor variance is the sum of the direct labor rate variance and the direct labor efficiency variance.

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Definitions:

Salaries

Regular payments made to employees for their labor or services, typically expressed as annual amounts but paid in smaller increments such as monthly or biweekly.

Variable Cost

Expenses that change in proportion to the level of production or sales in a company.

Fixed Cost

A cost that does not change with an increase or decrease in the amount of goods or services produced or sold.

Marginal Cost

The financial increase incurred by adding one more unit to the production of a product or service.