Payroll Checks Are Typically Drawn on

question 33

Multiple Choice

Payroll checks are typically drawn on

• A)the regular checking account
• B)a payroll imprest account
• C)a wages payable account
• D)petty cash

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Definitions:

Variable Overhead Rate Variance

The difference between the actual variable overhead costs incurred and the expected costs based on standard rates and actual production levels.

Direct Labor-hours

The grand total of working hours by employees who directly contribute to the manufacturing pipeline.

Variable Overhead

Costs that fluctuate with production volume, such as utility expenses or materials costs, which increase or decrease as production levels change.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected (or standard) variable overhead based on the predetermined rate.