If the Standard to Produce a Given Amount of Product

question 21

True/False

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

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Definitions:

Unearned Revenue Account

A liability account that records payments received for goods or services not yet delivered or performed.

Record Deferral

The process of postponing the recognition of certain income or expenses in the financial records until a later accounting period.

Journal Entries

Records in accounting that document every financial transaction affecting the accounts of a business, used to track and manage financial activities.

Note Payable

A written promise to pay a specified amount of money, typically with interest, by a certain date.