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Actual direct labor costs may differ from the flexible budget amounts because

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Actual direct labor costs may differ from the flexible budget amounts because

Actual direct labor costs may differ from the flexible budget amounts because

▸ employees always operate at the desired efficiency level.

▸ the company may set a standard wage rate, and the market forces may require a change in that rate.

▸ the labor contract may require a higher wage rate than what the company is paying.

▸ employees may be compensated based on the number of units produced.

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Managerial Accounting

Edition: 4^th

Author: Davis

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bodie1980

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manonvsb Author

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Smart ... Thanks!

lierac00

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Thank you, thank you, thank you!

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Thanks

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