Which of the Following Is Not a Reason That Actual

question 2

Multiple Choice

Which of the following is not a reason that actual direct labor costs may differ from the flexible budget amounts?

• A)The purchasing manager resigned and a higher-paid replacement was hired.
• B)After the company set the standard wage rate, the union reached an agreement that required a pay raise for all factory workers.
• C)Because the air conditioner in the factory was not working properly, workers did not work as efficiently as expected in the hot afternoons.
• D)Unanticipated breakdowns in factory machinery increased production time.

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Definitions:

Software

A collection of data, programs, procedures, and instructions that tell the hardware of a computer what to do.

Accumulated Depreciation

Represents the total depreciation expense charged against an asset over its useful life up to a specific date, reflecting the decrease in value of physical assets.

Adjusting Journal Entry

A record made in the books at the close of an accounting period for the purpose of assigning income and expenses to their rightful period.

Equipment

Tangible property used in operations, such as machinery and computers, which has a useful life longer than one accounting period and is used in the production of goods and services.