When the actual wage rate paid to direct labor workers exceeds the standard wage rate, the

journal entry
would include:
A) Credit to Wages Payable; Credit to Labor Rate Variance
B) Credit to Work-In-Process; Credit to Labor Rate Variance
C) Credit to Wages Payable; Debit to Labor Rate Variance
D) Credit to Work-In-Process; Debit to Labor Rate Variance
Level: Medium LO: 3,7 Ans: C

When the actual wage rate paid to direct labor workers is less than the standard wage rate, the journal
entry would include:
A) Debit to Wages Payable; Credit to Labor Rate Variance
B) Debit to Work-In-Process; Credit to Labor Rate Variance
C) Debit to Wages Payable; Debit to Labor Rate Variance
D) Debit to Work-In-Process; Debit to Labor Rate Variance
Level: Medium LO: 3,7 Ans: B

When the actual direct labor-hours exceed the standard direct labor-hours allowed for the actual output of
the period, the journal entry would include:
A) Credit to Wages Payable; Credit to Labor Efficiency Variance
B) Credit to Work-In-Process; Credit to Labor Efficiency Variance
C) Credit to Wages Payable; Debit to Labor Efficiency Variance
D) Credit to Work-In-Process; Debit to Labor Efficiency Variance
Level: Medium LO: 3,7 Ans: C