Table 28-2 Labor Data for Aridia

question 186

Multiple Choice

Table 28-2
Labor Data for Aridia
-Refer to Table 28-2. The labor-force participation rate of Aridia in 2011 was

• A)43.3%.
• B)54.2%.
• C)63.3%.
• D)68.4%.

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Definitions:

Fixed Manufacturing Overhead

Costs that do not vary with the level of production, such as rent, salaries of permanent staff, and depreciation of factory equipment.

Fixed Overhead Volume Variance

The difference between the budgeted and actual fixed overhead costs attributed to the variation in produced units.

Materials Price Variance

The difference between the actual cost of materials and the standard cost, which can indicate inefficiencies or savings.

Direct Labor Rate Variance

The difference between the expected cost of direct labor at standard rates and the actual cost incurred.