The Following Data Relate to Direct Labor Costs for February

question 118

Multiple Choice

The following data relate to direct labor costs for February: What is the direct labor time variance?

• A) $7,700 favorable
• B) $7,700 unfavorable
• C) $11,200 unfavorable
• D) $11,200 favorable

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Definitions:

Salaries

Regular payments made to employees for their services, typically expressed as an annual amount but paid in intervals (e.g., monthly or biweekly).

Departmental Personnel

Employees or staff members who work within a specific department of an organization.

Profit Margin

A measure of profitability, calculated as net income divided by revenue, indicating the percentage of revenue that exceeds the costs of goods sold.

Investment Turnover

Investment turnover measures how effectively a company uses its assets to generate sales revenue, indicating the efficiency of asset management.