Fact Pattern 24-2B

question 25

Multiple Choice

Fact Pattern 24-2B
Ewa signs an instrument unconditionally promising to pay to "First State Bank" $5,000 with interest in installments with the final payment due June 1, 2012.
-Refer to Fact Pattern 24-2B. With respect to this instrument, First States Bank is

• A) the drawee.
• B) the drawer.
• C) the maker.
• D) the payee.

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Definitions:

Quality Of Materials

The measure of suitability of the materials used in production, affecting the durability and functionality of the final product.

Labour Rate Variance

The difference between the actual cost of direct labor and the estimated cost based on the standard labor rate.

Standard Labour Hours

The calculated amount of labor hours predetermined to be necessary for completing a specific task or producing a certain quantity of goods.

Actual Hours Worked

The real number of hours an employee or workforce spends performing tasks during a specific period, as opposed to scheduled or standard hours.