A Credit Balance in the Labor Yield Variance Implies

question 14

Multiple Choice

A credit balance in the labor yield variance implies:

• A) the total units produced was greater than the expected number of units given the total labor hours actually used.
• B) the total units produced was less than the expected number of units given the total labor hours actually used.
• C) the total units produced was greater than the expected number of units given the total standard hours allowed.
• D) the total units produced was less than the expected number of units given the total standard hours alloweD.
• This would be a favorable variance.

---

Definitions:

Treasury Stock

Shares that were first put into circulation by a company and then taken back, diminishing the quantity of shares actively traded on the market.

Small Stock Dividend

A dividend paid in the form of additional shares of the issuing corporation, typically representing less than a 25% increase of the outstanding shares.

Retained Earnings

The portion of net income that is retained by the corporation rather than distributed to its owners as dividends.

Additional Paid-In Capital

Additional paid-in capital is the amount of money that shareholders have paid for shares above the stated par value during issuance, representing excess funds contributed by shareholders.