Under MACRS,tangible Personal Property Used in Trade or Business Purchased

question 26

True/False

Under MACRS,tangible personal property used in trade or business purchased and placed into service on March 1,2014 should be depreciated for 10 months in 2014.Assume the business uses a calendar tax year.

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Definitions:

Direct Labor-Hours

A measure of the amount of time workers spend directly manufacturing a product or performing a service.

Materials Quantity Variance

The variance arising from the actual amount of materials utilized in manufacturing compared to the anticipated standard quantity, times the standard expense for each unit.

Labor Efficiency Variance

The variance between the number of hours actually worked and the anticipated standard hours, times the normal rate per hour.

Labor Rate Variance

A metric used to measure the difference between the actual rate paid to workers and the expected (or standard) rate.