Alyssa Corporation Uses a Standard Cost System

question 12

Multiple Choice

Alyssa Corporation uses a standard cost system.Direct labor information for Product CER for the month of October is as follows: What are actual hours worked?

• A)1,330
• B)1,400
• C)1,500
• D)1,300

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Definitions:

Operating Activities

The section of a business's cash flow statement that accounts for its core business operations' cash inflows and outflows, involving receipts from sales, payments to suppliers, and payroll.

Prepaid Expenses

Costs that have been paid in advance for goods or services to be received in the future, recorded as an asset on the balance sheet.

Net Income

The remaining profit after deducting all operating expenses, taxes, and additional costs from the total revenue.

Indirect Method

The indirect method is a way of calculating cash flows from operating activities by starting with net income and adjusting for non-cash transactions.