Assuming That No Stipulation Is Made in the Will, Indicate

question 8

Essay

Assuming that no stipulation is made in the will, indicate by placing a check mark in the appropriate column whether the typical accounting treatment of each of the following items would affect principal only, income only, or both principal and income accounts of an estate.

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Definitions:

Direct Labor Time Variance

The difference between the actual hours spent on production and the standard hours expected, multiplied by the standard hourly wage rate.

Actual Costs

are the genuine expenditures incurred in the production or acquisition of goods and services, as opposed to estimated or standard costs.

Standard Costs

Pre-determined or benchmark costs for products, operations, or activities, used for budgeting purposes and performance evaluation against actual costs.

Direct Labor Time Variance

The difference between the actual time taken to perform work and the estimated standard time, adjusted for units produced.