When the Actual Wage Rate Paid to Direct Labor Workers

question 25

Multiple Choice

When the actual wage rate paid to direct labor workers is less than the standard wage rate, the journal entry would include:

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