Belle Auto Detailing Reported the Following Results for the Past

question 246

Multiple Choice

Belle Auto Detailing reported the following results for the past week: What is Belle's direct labor efficiency variance?

• A)$931 favorable
• B)$931 unfavorable
• C)$2720 favorable
• D)$2720 unfavorable

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Definitions:

Direct Labor

The labor costs directly attributable to the production of goods or services, which includes wages paid to workers who physically produce the product.

Manufacturing Overhead

All costs related to the production process that are not direct materials or direct labor, known as indirect expenses.

Period Costs

Expenses that are not directly tied to production activity and are expensed in the period they are incurred.

Variable Selling Expense

Costs that vary directly with the volume of sales, such as commissions and shipping charges.