To record the incurrence of direct labour cost and its use in production, the general ledger would include what entry to the labour rate variance account?

A) $340 debit.
B) $340 credit.
C) $240 debit.
D) $240 credit.

Question

Zybrea Knight · Accepted Answer

Final Answer : B, Explanation :  The labour rate variance is calculated as the difference between the actual cost per hour and the standard cost per hour, multiplied by the actual hours worked. The standard cost per hour is $9.60, and the actual cost per hour is calculated as $20,060 / 1,700 = $11.80. The variance is ($11.80 - $9.60) * 1,700 = $2,200 debit, indicating that the actual cost was higher than the standard cost. However, the options provided do not include this calculation, suggesting a misunderstanding in the question's setup or a mistake in the calculation. Given the options, none directly match the correct calculation based on the provided data.

To record the incurrence of direct labour cost and its use in production, the general ledger would include what entry to the labour rate variance account?

A) $340 debit.
B) $340 credit.
C) $240 debit.
D) $240 credit.

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Learning Objectives

Related questions

To record the incurrence of direct labour cost and its use in production, the general ledger would include what entry to the labour rate variance account?A) $340 debit.B) $340 credit.C) $240 debit.D) $240 credit.

Definitions

Learning Objectives

Learning Objectives

Related questions

To record the incurrence of direct labour cost and its use in production, the general ledger would include what entry to the labour rate variance account?

A) $340 debit.
B) $340 credit.
C) $240 debit.
D) $240 credit.