When the Actual Direct Labor-Hours Exceeds the Standard Direct Labor-Hours

question 20

Multiple Choice

When the actual direct labor-hours exceeds the standard direct labor-hours allowed for the actual output of the period, the journal entry would include:

• A)Credit to Wages Payable; Credit to Labor Efficiency Variance
• B)Credit to Work-In-Process; Credit to Labor Efficiency Variance
• C)Credit to Wages Payable; Debit to Labor Efficiency Variance
• D)Credit to Work-In-Process; Debit to Labor Efficiency Variance

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Definitions:

Long-range Rewards

Benefits or outcomes that are not immediate but are achieved over a longer period.

10-year Rule

A principle suggesting that it takes approximately 10 years of intensive practice or study to achieve mastery in a field or discipline.

Expert Performance

A high level of skill or knowledge in a particular area that significantly surpasses that of the average person.

Longitudinal Survey

A research design that involves repeated observations of the same variables (such as people) over short or long periods of time to detect changes and developments.