Stanfa Corporation's Standard Wage Rate Is $10

question 42

Multiple Choice

Stanfa Corporation's standard wage rate is $10.50 per direct labor-hour (DLH) and according to the standards,each unit of output requires 8.0 DLHs.In January,3,700 units were produced,the actual wage rate was $10.80 per DLH,and the actual hours were 25,280 DLHs.In the journal entry to record the incurrence of direct labor costs in January,the Work in Process entry would consist of a:

• A)debit of $310,800.
• B)credit of $273,024.
• C)credit of $310,800.
• D)debit of $273,024.

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Definitions:

Extraordinary Items

Events and transactions that are distinguished by their unusual nature and infrequency, reported separately in financial statements for clearer analysis.

Earnings Per Share

A measure of a company's profitability that calculates how much money shareholders would receive for each share they own if all of the profits were distributed to them.

Component of the Business

A segment or section of a company that can be identified operationally and for financial reporting, often seen as a distinct part of the business that could be separated or sold.

Extraordinary Item

A term previously used in accounting for events and transactions that were both unusual in nature and infrequent, which is no longer preferred under most financial reporting frameworks.