When the direct labor cost is recorded, which of the following entries will be made?

A) $25,580 in the Labor Rate Variance column
B) ($25,580) in the Labor Rate Variance column
C) ($25,580) in the Labor Efficiency Variance column
D) $25,580 in the Labor Efficiency Variance column

Favorable variances are entered in the worksheet as positive entries and unfavorable variances as negative entries.
Reference: APP10B-Ref9
Robnett Corporation manufactures one product.It does not maintain any beginning or ending Work in Process inventories.The company uses a standard cost system in which inventories are recorded at their standard costs.There is no variable manufacturing overhead.The standard cost card for the company's only product is as follows: During the year, the company completed the following transactions:
a.Purchased 106,900 liters of raw material at a price of $6.80 per liter.
b.Used 93,760 liters of the raw material to produce 24,700 units of work in process.
Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page.The beginning balances in each of the accounts have been given.PP&E (net)stands for Property, Plant, and Equipment net of depreciation.