A Note Signed by Both a and B on Which

question 42

True/False

A note signed by both A and B on which they have joint and several liability is one on which A is responsible for one-half of the note and B is responsible for one-half of the note.

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Definitions:

Direct Labor-Hours

The total hours of labor directly involved in the production of goods or services, often used as a basis for allocating labor costs to products.

Variable Manufacturing Overhead

Indirect manufacturing costs that fluctuate with production volume, such as utilities and maintenance expenses.

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours expected, multiplied by the standard labor rate.

Direct Materials Purchases Variance

The difference between the actual cost of direct materials purchased and the expected cost of direct materials, based on standard cost.