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

question 18

Multiple Choice

When the actual direct labor-hours are less than 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:

Balancing Interests Principles

Involves creating a fair and equitable approach to managing and reconciling the diverse and often competing interests of stakeholders in an organization or a project.

Probability of Effect

refers to the likelihood or chance that a specific action or condition will lead to a particular outcome or result.

Concern for Harmony Principles

Ethical values that prioritize peaceful, cooperative, and non-confrontational relations among individuals or groups.

Decision Making

The cognitive process of selecting a course of action from among multiple alternatives.