The Flexible Budget Breaks Down into the Rate and Efficiency

question 21

Essay

The flexible budget breaks down into the rate and efficiency variances for direct labor.
Required:
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.
Unit 6-3,

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Definitions:

Phalanges

The bones of the fingers and toes in human and many other animals, playing key roles in movement and manipulation.

Metatarsals

The long bones in the foot that connect the ankle to the toes, important for walking and balance.

Sternum

The long, flat bone located in the center of the chest, connected to the ribs via cartilage, forming part of the rib cage.

Styloid Process

A slender, pointed piece of bone that extends down from the temporal bone of the skull, serving as an attachment point for muscles associated with the tongue and larynx.