The Following Information Describes a Company's Usage of Direct Labor

question 84

Multiple Choice

The following information describes a company's usage of direct labor in a recent period: How much is the direct labor rate variance?

• A)$253,500 favorable
• B)$331,500 favorable
• C)$253,500 unfavorable
• D)$331,500 unfavorable

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Definitions:

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been deducted from revenues.

Non-Controlling Interest

A stake in a corporation that is owned by investors who are not affiliated or connected with the parent company, representing a portion of equity ownership in a subsidiary not wholly owned by the parent.

Non-Controlling Interest

A stake in a company that is less than 50%, meaning the investor does not have a majority control.

Preference Shares

Shares which have rights to dividends that are paid out before dividends to common shareholders and may have priority over common shares in the event of liquidation.