During the Year,Able Co

question 105

Short Answer

During the year,Able Co.purchased $39,600 worth of supplies,at the end of the year,the balance sheet showed a balance of $1,760 in the Supplies account.Prepare the necessary adjusting entry.

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Definitions:

Labor Efficiency Variance

A measure in managerial accounting that compares the actual hours worked to the standard hours planned for a process, indicating efficiency in labor usage.

Labor Rate Variance

The difference between the actual labor costs incurred and the expected (or standard) labor costs for the production achieved.

May

Not a term that needs defining within the given context.

Labor Efficiency Variance

The variance between the number of hours actually worked and the expected standard hours needed to achieve a specific output level, calculated using the standard labor rate.