The Journal Entry to Record the Cost of Direct Labor

question 40

Multiple Choice

The journal entry to record the cost of direct labor used in this period includes:

• A)A debit to Work in Process Inventory of $2,880.
• B)A debit to Work in Process Inventory of $2,560.
• C)A credit to Direct Labor Rate Variance of $320.
• D)A credit to Direct Labor Rate Variance of $360.

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Definitions:

Mere Exposure Effect

A psychological phenomenon whereby people tend to develop a preference for things simply because they are familiar with them.

Familiarity Breeds

A phrase suggesting that extensive knowledge of or exposure to something may lead to a loss of appreciation or interest.

Opposites Attract

A popular concept suggesting that individuals with differing personalities, interests, or physical attributes are often attracted to each other.

Average Price

The mean cost of a group of goods or services, calculated by dividing the total cost by the number of units.