The Labor Time Variance Is

question 110

Multiple Choice

The labor time variance is

• A) $9,880 favorable
• B) $9,880 unfavorable
• C) $7,800 unfavorable
• D) $7,800 favorable

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Definitions:

Differential Income

The difference in income between two alternative decisions or scenarios, used in managerial decision-making to determine the better financial option.

Variable Cost

Expenses that change in proportion to the amount of goods produced or the volume of sales.

Differential Analysis

A financial technique used to compare the costs and benefits of alternative business decisions.

Fixed Factory Overhead

Refers to the consistent costs associated with operating a production facility, which do not vary with the level of output, such as rent, salaries of managers, and depreciation of factory equipment.