How Did the Central Pacific Railroad Solve Its Labor Problem

question 3

Multiple Choice

How did the Central Pacific Railroad solve its labor problem?

• A) by importing Irish laborers
• B) by purchasing African American slaves
• C) by importing Chinese laborers
• D) by using Indians as forced labor

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Definitions:

Overhead Variance

The difference between the actual overhead incurred and the overhead allocated to production during a given period.

Flexible Budget

A projection of budget data for various levels of activity.

Overhead Applied

The portion of overhead costs allocated to individual products or job orders based on a predetermined rate.

Labor Price Variance

This is the difference between the actual cost of labor and the standard cost, indicating how much more or less was paid for labor than expected.