Assembly Line Workers at Thompson Manufacturing Worked a Total of 9,300

question 100

Multiple Choice

Assembly line workers at Thompson Manufacturing worked a total of 9,300 direct labor hours to produce 36,000 units. The standard for producing one unit is 15 minutes at a wage rate of $10.50. If the actual wage rate was $10 per direct labor hour, Thompson’s direct labor efficiency variance is

• A) $2,000 favorable
• B) $3,000 favorable
• C) $3,150 unfavorable
• D) $4,500 unfavorable

Identify the different items that do not belong on the statement of cash flows.

Recognize the importance of noncash investing and financing activities.

Understand the adjustments made to net income in calculating net cash flow from operating activities.

Know the last items to be reported on the statement of cash flows.

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Definitions:

Reversing Entries

Journal entries made at the beginning of an accounting period to reverse or cancel out adjusting entries made in the previous period.

Journal Entries

The record of financial transactions in the accounting books, capturing debits and credits for each transaction to maintain accurate financial statements.

Salaries Earned

Compensation that employees have earned during a specific period but have not yet been paid.

Workweek

A fixed, recurring period used to measure a worker's or business's hours worked, often consisting of five to seven consecutive days.