The Journal Entry to Record Direct Labor Costs Relating to Work

question 20

Multiple Choice

The journal entry to record direct labor costs relating to work performed in April includes:

• A) A debit to Work-in-Process Inventory for $70,500.
• B) A credit to Labor Rate Variance for $7,500.
• C) A credit to Labor Efficiency Variance for $4,200.
• D) A credit to Direct Labor for $67,200.

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Definitions:

Accommodation

The process we use to create new schemas (mental representations) or drastically alter existing ones to incorporate new information that otherwise would not fit.

Centration

The tendency, especially in children, to focus on one aspect of a situation while ignoring others.

Accommodation

The process by which the eye changes optical power to maintain a clear image or focus on an object as its distance varies.

Assimilation

The cognitive process in which individuals integrate new information into existing frameworks or schemas.