If the Standard to Produce a Given Amount of Product

question 166

True/False

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

Utilize different financial ratios to analyze a company's performance, including ROCE, debt ratios, and liquidity ratios.

Analyze different business strategies through economic differences reflected in asset utilization and profitability.

Apply knowledge of solvency, liquidity, and credit risk in financial analysis.

Understand the use of financial statements, especially the statement of cash flows, in assessing a company's credit risk and financial health.

---

Definitions:

Compound

A material composed of atoms from at least two distinct elements that are chemically combined.

Polycaprolactone

A biodegradable polymer with the chemical formula (C6H10O2)n used in making polyurethane, adhesives, and biomedical devices.

Biodegradable Polymer

A type of polymer that can be broken down by microorganisms into water, carbon dioxide (or methane), and biomass, within a reasonably short period of time.

Lactone Monomer

A singular molecular unit that can form polymers and contains a lactone ring, a cyclic ester.