Cafferty Corporation Has Provided the Following Data Concerning Its Direct

question 48

Multiple Choice

Cafferty Corporation has provided the following data concerning its direct labor costs for March: The Labor Efficiency Variance for March would be recorded as a:

• A)Debit of $3,200
• B)Credit of $3,125
• C)Credit of $3,200
• D)Debit of $3,125

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Definitions:

External Party

An entity or individual that is outside of an organization and can include suppliers, customers, government agencies, and lenders.

Company Tax Rate

The rate at which a company is taxed on its profits by the government.

Inventories

The total amount of goods available for sale and raw materials available to produce those goods held by a company.

Subsidiary Entity

A company that is controlled by another company, often referred to as the parent company, through ownership of more than half of the subsidiary's voting stock.