Figure 10-8

question 150

Multiple Choice

Figure 10-8. The Perfect Tool Company (South America Division) produced 80,000 saw blades during the year.It took 1.5 hours of labor per blade at a rate of $8.50 per hour.However,its standard labor rate is $8.00.Its labor efficiency variance was an unfavorable $40,000.
Refer to Figure 10-8.What is the journal entry to record both labor variances?

• A)Work In Process 920,000 Labor Rate Variance 60,000
• Labor Efficiency Variance 40.000
• Accrued Payroll 1,020,000
• B)Work In Process 960,000 Labor Rate Variance 57,500
• Labor Efficiency Variance 40,000
• Accrued Payroll 1,057,500
• C)Work In Process 920,000 Labor Rate Variance 60,000
• Labor Efficiency Variance 40,000
• Accrued Payroll 940,000
• D)Work In Process 960,000 Labor Rate Variance 57,500
• Labor Efficiency Variance 40,000
• Accrued Payroll 977,500

---

Definitions:

Cliché Conversation

Superficial or predictable exchanges lacking in depth or originality.

Levels of Self-disclosure

This concept pertains to the degree to which an individual shares personal, private information with others, varying from superficial to deeply intimate details.

Genuine Self-disclosure

The act of openly sharing personal thoughts and feelings with others to build trust and intimacy in relationships.

Open Pane

A term that typically refers to a section of the Johari window model aiming to increase mutual understanding between individuals through feedback and disclosure.