The First Line That Appears on the Direct Labor Budget

question 66

Multiple Choice

The first line that appears on the direct labor budget is:

• A)direct labor hours per unit.
• B)projected sales in units.
• C)units to be produced.
• D)quantity of beginning direct materials ending inventory.
• E)None of the answer choices is correct.

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Definitions:

Price Variance

The difference between the actual cost of a good or service and its budgeted or standard cost.

Standard Cost System

A cost accounting system that uses standard costs for products or services to compare against actual costs and analyze variances for management control.

Work In Process Inventory

Goods that are in the process of being manufactured but are not yet complete.

Fixed Overhead Costs

Regular, unchanged costs incurred by a business, regardless of its level of production or activity, such as rent and salaries.