MC Qu. 33 Widman, Inc. makes and sells only one...

Widman, Inc. makes and sells only one product and uses standard costing. The standard cost sheet for one unit of product includes the following: Direct materials: 5 grams at $0.35 per gram Direct labor: 1 hour at $8 per hour Last period the company had the following results: 5,000 grams of direct materials purchased at $0.40 per gram 4,000 grams of direct materials used in production 900 units of product were made 850 hours of direct labor were used at $8.50 per hour

The journal entry to record the incurrence of direct labor cost last period would include:

Work in process $6,800, Debit; labor rate variance $425, Credit

Work in process $6,800, Debit; labor rate variance $425, Debit

Work in process $7,200, Debit; labor efficiency variance $400, Debit

Work in process $7,200, Debit; labor efficiency variance $400, Credit