When the Actual Direct Labor-Hours Exceeds the Standard Direct Labor-Hours

question 20

Multiple Choice

When the actual direct labor-hours exceeds 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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