The Direct Labor Rate Variance Is Calculated by Multiplying the Standard

question 79

True/False

The direct labor rate variance is calculated by multiplying the standard hours that should have been worked for the actual output by the difference between the standard labor rate and the actual labor rate.

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Definitions:

Horizontal Merger

A business consolidation that occurs between firms which operate in the same industry, often aimed at reducing competition or achieving economies of scale.

Interlocking Directorate

A situation where one or more members of the board of directors of a corporation are also on the board of directors of a competing corporation; illegal under the Clayton Act.

Tying Contract

An agreement requiring a customer to buy additional products or services along with a primary product or service.

Herfindahl Index

A measure of the size of firms in relation to the industry and an indicator of the amount of competition among them, calculated as the sum of the squares of the market shares of each firm within the industry.