The Flexible Budget Breaks Down into the Rate and Efficiency

question 75

Essay

The flexible budget breaks down into the rate and efficiency variances for direct labor.
a.List two reasons why actual wage rates might differ from standard wage rates,resulting in a direct labor rate variance.
b.List two reasons why actual labor hours might differ from standard labor hours,resulting in a direct labor efficiency variance.

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Definitions:

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Entities or individuals that offer services to another entity or individuals, typically in exchange for payment.

Parliamentary Procedure

A set of rules and guidelines designed to manage meetings and facilitate decision-making within legislative bodies or organizations.

Point Of Information

A formal request during a debate or meeting to receive clarification or factual information.

Group Dynamics

The study of behaviors and psychological processes that occur within a social group or between social groups.