The Formula to Compute Direct Labor Time Variance Is to Calculate

question 113

Multiple Choice

The formula to compute direct labor time variance is to calculate the difference between

• A) actual costs - standard costs
• B) actual costs + standard costs
• C) (actual hours * standard rate) - standard costs
• D) actual costs - (actual hours * standard rate)

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Definitions:

Regular Time

The standard hours that an employee is scheduled to work, excluding overtime or abnormal schedules.

Aggregate Planning

A process by which a company determines optimal levels of capacity, production, subcontracting, inventory, stockouts, and even pricing, over a specified time period.

Ending Inventory

The value of goods available for sale at the end of an accounting period.

Stockouts

Occur when an item is not available for sale or use due to insufficient stock levels, potentially leading to lost sales or production delays.