A Credit Balance in the Labor Yield Variance Implies

question 50

Multiple Choice

A credit balance in the labor yield variance implies:

• A) the total units produced was greater than the expected number of units given the total labor hours actually used.
• B) the total units produced was less than the expected number of units given the total labor hours actually used.
• C) the total units produced was greater than the expected number of units given the total standard hours allowed.
• D) the total units produced was less than the expected number of units given the total standard hours allowed.

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Definitions:

Estimated

An approximation or informed guess of a value, amount, or size based on available data or trends but not derived from exact calculations.

Carrying Amount

The net value of an asset or liability recorded on the balance sheet, calculated as the original cost minus any depreciation, amortization, or impairment costs.

Allowance Account

An account used to adjust the carrying value of accounts receivable to the amount expected to be collected.

Contra Account

An account used in conjunction with another account to adjust or offset its balance.