If actual direct labor cost was $7,560 and standard labor cost was $7,000, the journal entry to record this would include:
A. A credit to the labor rate variance account of $560 and a credit to Direct Labor of $7,000.
B. A debit to the labor rate variance account of $560 and a debit to Direct Labor of $7,000.
C. A credit to the labor rate variance account of $560 and a debit to Direct Labor of $7,560.
D. A debit to the labor rate variance account of $560 and a credit to Direct Labor of $7,560.
D
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A distributor should decide his safety inventory levels based on
A) the level of safety inventory carried by all retailers supplied by him. B) the level of safety inventory carried by other distributors. C) the level of safety inventory carried by manufacturers supplying him. D) the level of cycle inventory carried by all retailers supplied by him.
The basic trade-off to be considered by the supplier with production capacity is between
A) committing to an order from a high-price buyer or waiting for a lower price buyer to arrive later on. B) committing to an order from a lower price buyer or waiting for a high-price buyer to arrive later on. C) allowing the market to be controlled by price or capacity. D) having marketing or operations establish the constraints within which orders are accepted.