Asked by GabrielJ Gonzalez on Jun 04, 2024
Verified
Direct materials variances are called price and quantity variances.However,when referring to direct labor,these variances are usually called ________ and ________ variances.
Price Variances
A measurement of the difference between the actual cost of a good or service and its expected cost.
Quantity Variances
Quantity variances are differences between the expected and actual quantities of inputs (materials, labor) used in the production process or during a specific period.
Direct Labor
The wages or salaries paid to employees who are directly involved in the production process of goods or services.
- Understand and calculate direct labor and direct materials variances including rate, efficiency, and price.
Verified Answer
ZK
Learning Objectives
- Understand and calculate direct labor and direct materials variances including rate, efficiency, and price.