Asked by Alina Avdeyev on Jul 16, 2024
Verified
When the direct labor cost is recorded, which of the following entries will be made?
A) ($7,915) in the Labor Efficiency Variance column
B) $7,915 in the Labor Rate Variance column
C) $7,915 in the Labor Efficiency Variance column
D) ($7,915) in the Labor Rate Variance column
Labor Efficiency Variance
The difference between the actual hours worked and the expected hours worked, valued at the standard labor rate.
Labor Rate Variance
The variance between the real labor cost and the anticipated (or norm) cost, calculated based on the working hours.
- Acquire insight into the examination of variances in standard costing, particularly in the areas of materials and labor.
Verified Answer
AJ
Andrea JacksonJul 20, 2024
Final Answer :
D
Explanation :
Favorable variances are entered in the worksheet as positive entries and unfavorable variances as negative entries.
Learning Objectives
- Acquire insight into the examination of variances in standard costing, particularly in the areas of materials and labor.
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