When the Actual Direct Labor-Hours Is Less Than the Standard

question 46

Multiple Choice

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

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

Identify the importance of budgeted production units and their relationship with actual production in variance analysis.

Recognize the procedure for computing variances at the time of purchase or production.

Interpret the implications of variances for managerial decision-making and cost control.

Understand the concepts and calculations related to standard cost systems.

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