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Author Question: The standard number of direct labor hours used in calculating the direct labor efficiency variance is based on (Read 35 times)

Drewster127

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Question 1

If a company uses more direct labor hours than the standard allowed, the result is
◦ an unfavorable direct labor hour variance.
◦ an inflated Wages and Salaries Payable account on the balance sheet.
◦ a favorable efficiency variance.
◦ a reduction in operating income.

Question 2

The standard number of direct labor hours used in calculating the direct labor efficiency variance is based on
◦ the actual number of finished units produced.
◦ the number of units in the production budget.
◦ the number of units sold.
◦ the static budget.


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Marked as best answer by Drewster127 on Feb 5, 2023

khudija

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Drewster127

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Reply 2 on: Feb 5, 2023
:D TYSM


billybob123

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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