"The Difference Between Actual Hours Worked and Standard Hours Allowed

question 21

Multiple Choice

"The difference between actual hours worked and standard hours allowed for the good units produced,multiplied by the standard labor rate" is a description of the

• A)direct labor rate variance.
• B)direct labor efficiency variance.
• C)total direct labor cost variance.
• D)direct labor quantity variance.

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Definitions:

Journal Entry

A record in accounting that represents a transaction where at least two account balances are affected.

Cash Overage

A situation where the amount of cash on hand is greater than the expected amount, often due to errors in cash management or recording.

Internal Control System

A process implemented by management and other personnel to provide reasonable assurance regarding the achievement of objectives in effectiveness and efficiency of operations, reliability of financial reporting, and compliance with laws and regulations.

Purpose

The reason for which something is done or created, or for which something exists.