McKinney and Associates Provided the Following Information Relative to the Times

question 63

Essay

McKinney and Associates provided the following information relative to the times and costs to prepare a simple income tax return:
$\begin{array}{ll}\underline{\text { Standards }} & \underline{\text { Actual }} \\2 \mathrm{DLH} @ \$ 50 \text { per DLH } & 500 \text { simple income tax returnwere prepared during the yea } \\& 1.100 \mathrm{DLH} \text { utilized during the ver (Q } \$ 52 \text { per DLH }\end{array}$
Compute the price and efficiency variances.

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Definitions:

Cash Purchase

A transaction where goods or services are bought and paid for with physical currency at the time of purchase.

Inventory

Inventory encompasses the raw materials, work-in-progress goods, and the finished products that a company holds with the intention of selling them to earn revenue.

Multi-Column Purchases Journal

A specialized accounting journal that records the purchase transactions of a business in multiple columns for different types of purchases.

Accounts Payable Account

An accounting entry that represents a company's obligation to pay off a short-term debt to its creditors or suppliers.