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:

Performance Appraisal

A regular review and evaluation of an employee's job performance and overall contribution to an organization.

Reliable

The quality of being consistently good in performance, accuracy, or ability to be trusted.

Valid

Legitimately founded on fact or evidence, sound and applicable.

Job Rotation

A method where employees are moved between two or more jobs in a planned manner to expose them to different experiences and wider aspects of an organization, enhancing versatility and reducing monotony.