Cafferty Corporation Has Provided the Following Data Concerning Its Direct

question 48

Multiple Choice

Cafferty Corporation has provided the following data concerning its direct labor costs for March:



-The Labor Rate Variance for March would be recorded as a:

• A)Credit of $855
• B)Credit of $780
• C)Debit of $780
• D)Debit of $855

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Definitions:

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to a permanent equity account.

General Ledger

A thorough collection of financial records that documents every financial transaction undertaken by a business.

Adjustments Credit Column

The part of a financial or accounting document where adjustments are made to credits, increasing the value of certain accounts.

Merchandise Inventory

The inventory of products that a retailer plans to sell to customers, accounting for a critical component of its current assets.