A Favorable Efficiency Variance for Direct Manufacturing Labor Indicates That

question 61

Multiple Choice

A favorable efficiency variance for direct manufacturing labor indicates that ________.

• A) a lower wage rate than planned was paid for direct labor
• B) a higher wage rate than planned was paid for direct labor
• C) less direct manufacturing labor-hours were used during production than planned for actual output
• D) more direct manufacturing labor-hours were used during production than planned for actual output

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Definitions:

Trend

The prevailing trend or the way in which something is evolving or transforming with the passage of time.

Process Distribution

The spread of all possible outcomes of a process, often shown in a statistical or probability distribution.

Type II Error

The error made in statistical testing when a false null hypothesis is not rejected, indicating a missed opportunity to find a true effect.

Sample Size

The number of observations or data points collected in a sample, which is a subset of the larger population.