Reference: 21_05 A Job Was Budgeted to Require Three Hours of Labor

question 107

Multiple Choice

Reference: 21_05
A job was budgeted to require three hours of labor per unit at $8 per hour. The job consisted of 8,000 units and was completed in 22,000 hours at a total labor cost of $198,000.
-The entry to record the labor costs and variances would include a:

• A) debit to Goods in Process for $198,000.
• B) credit to Factory Payroll for $192,000.
• C) debit to Direct Labor Cost Variance for $6,000.
• D) credit to Direct Labor Cost Variance for $6,000.
• E) credit to Direct Labor Efficiency Variance for $16,000

---

Definitions:

PP

Commonly used as an abbreviation for "pages" or "per pro" (per procurationem, meaning to sign on behalf of another person).

Abbreviation

An abbreviated form of a term or expression, used to simplify communication.

Hidden

Something that is concealed or not easily seen or found.