If an Agent Is Authorized to Execute an Instrument on Behalf

question 51

True/False

If an agent is authorized to execute an instrument on behalf of a principal and signs "Cornwall,principal,by Lyons,agent," only the principal is liable on the instrument.

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Definitions:

Labor Efficiency Variance

The difference between the actual labor hours used in production and the standard hours expected, multiplied by the standard labor rate.

Labor Rate Variance

The difference between the actual hourly wage paid to workers and the standard or expected wage rate, multiplied by the total hours worked.

Standard Amount

A benchmark or norm set for the quantity or cost of inputs in producing a specific product or in carrying out a process.

Actual Output

The real, quantifiable production achieved within a given time period, often compared against planned or potential output.