Which of the Following Shows the Effect on Work in Process

question 32

Multiple Choice

Which of the following shows the effect on work in process inventory when assigning direct labor costs to the production process?

• A)Debited for standard quantity of direct labor used for actual production multiplied by the standard cost per hour
• B)Debited for actual quantity (AQ)of direct labor multiplied by the standard cost per hour
• C)Credited for standard quantity of direct labor used for actual production multiplied by the standard cost per hour
• D)Credited for standard quantity usage of direct labor for actual production multiplied by the actual cost per hour

---

Definitions:

Break-Even Cost

The amount of revenue needed to cover the total fixed and variable costs of producing and selling a product, with no profit or loss.

Demand Curve

A graph representing the relationship between the price of a good and the quantity demanded by consumers at various price levels.

Price Collusion

An illegal practice where competing companies agree on price levels rather than competing, harming consumer interests.

Price Fixing

An illegal practice where businesses agree on prices for their products or services, rather than letting competition in the marketplace determine them.