If the Actual Hourly Rate Is Greater Than the Standard

question 409

True/False

If the actual hourly rate is greater than the standard hourly rate, the labor rate variance is labeled unfavorable (U).

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Definitions:

Merchandise

Goods available for sale in a retail or wholesale environment.

Journalize

The act of recording transactions in an accounting journal in chronological order.

Interest Expense

The cost incurred by an entity for borrowed funds, represented as an expense on the income statement.

Discount Rate

The discount rate employed to calculate the current value of future cash flows in a discounted cash flow assessment.