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

A) ($6,450) in the Labor Efficiency Variance column
B) $6,450 in the Labor Efficiency Variance column
C) ($6,450) in the Labor Rate Variance column
D) $6,450 in the Labor Rate Variance column

Labor Efficiency Variance

Labor efficiency variance is a measure of the difference between the actual hours worked by employees versus the standard or expected hours worked to produce a certain amount of goods.

Labor Rate Variance

The difference between the actual cost of labor and the expected (or budgeted) cost, used in managerial accounting to monitor labor cost efficiency.