Gillian Writes a Check to Harris as Payment for a Video

question 59

Multiple Choice

Gillian writes a check to Harris as payment for a video game player but soon discovers the player is broken. She goes to the drawee bank and orally authorizes Ilene,a bank officer,to stop payment on the check. This order is valid for

• A)fourteen days.
• B)one year.
• C)six days.
• D)six months.

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Definitions:

Variable Overhead

Costs that vary with the level of production or sales volume, such as raw materials and labor directly involved in production.

Labor Efficiency Variance

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

Direct Labor Standards

The benchmarks set for the cost and amount of direct labor needed to produce a product or service, used for budgeting and performance evaluations.

Actual Direct Labor Cost

The total expense of labor directly involved in the manufacturing of a product, excluding indirect costs such as supervisory personnel.