Which of the Following Entries Would Correctly Record the Charging

question 214

Multiple Choice

Which of the following entries would correctly record the charging of direct labour costs to Work in Process given an unfavourable labour efficiency variance and a favourable labour rate variance?

• A) A debit to Work in Process, and credits to Labour Efficiency Variance, Labour Rate Variance, and Wages Payable.
• B) A debit to Work in Process and an equal credit to Wages Payable.
• C) Debits to Work in Process and Labour Efficiency Variance, and credits to Labour Rate Variance and Wages Payable.
• D) Debits to Work in Process and Labour Rate Variance, and credits to Labour Efficiency Variance and Wages Payable.

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Definitions:

R&D Expenditures

Financial investments made towards research and development activities aimed at creating new products, processes, or technologies.

Expected-Rate-Of-Return

An alternative phrasing for the anticipated gain or potential loss from an investment over a specified period, accounting for risk.

R&D Activities

Research and Development activities involve investigative efforts companies undertake to innovate and introduce new products or services.

R&D Spending

Expenditures devoted to research and development in order to innovate, improve products, or discover new processes and technologies.