If the Actual Direct Labor-Hours Used Is Less Than the Standard

question 23

True/False

If the actual direct labor-hours used is less than the standard direct labor-hours allowed for the actual output, then the journal entry to record the Labor Efficiency Variance would be a credit.

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Definitions:

Debit

An accounting entry that increases an asset or expense account, or decreases a liability or equity account, reflected on the left side of an account.

Credit

An accounting entry that either increases a liability or equity account, or decreases an asset or expense account. It is also used to refer to the provision of resources by a credit provider to a borrower.

Expenses

Costs incurred in the process of earning revenues, generally categorized as operating or non-operating.

Debit

An accounting entry that increases assets or expenses or decreases liabilities, equity, or revenue.