If the Standard to Produce a Given Amount of Product

question 96

True/False

If the standard to produce a given amount of product is 500 direct labor hours at $15 and the actual was 600 hours at $17, the rate variance was $1,200 favorable.

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Definitions:

QuickBooks

Accounting software developed by Intuit, designed for small to medium-sized businesses to manage sales and expenses and keep track of daily transactions.

Categorize Items

The process of organizing goods or services into groups or categories based on their characteristics or functions.

Inventory Items

Goods and materials that a business holds for the ultimate goal of resale or production.

Non-inventory Items

Items that a business sells but does not maintain in physical inventory, often including services and digital goods.