The Direct Labor Efficiency Variance Is the Difference Between the Standard

question 89

True/False

The direct labor efficiency variance is the difference between the standard hours allowed and the actual hours multiplied by the actual labor rate.

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Definitions:

Draft

A written order drawn on one person by another, requesting him to pay money to a designated third person.

Demand

A claim; a legal obligation; a request to perform an alleged obligation; a written statement of a claim. In corporation law, a request that the board of directors sue a person who has harmed the corporation; a prerequisite to a shareholder derivative suit.

Commercial Paper

Negotiable paper such as promissory notes, drafts, and checks that provides for the payment of money and can readily be transferred to other parties.

Unconditional Order

A directive that must be followed without any stipulations or requirements.