Question
The following information pertains to William Company: Standard materials allowed $25,000 Unfavorable materials price variance 3,000 Favorable materials usage variance 2,000 Actual payroll $30,000 Unfavorable
The following information pertains to William Company:
| Standard materials allowed | $25,000 |
| Unfavorable materials price variance | 3,000 |
| Favorable materials usage variance | 2,000 |
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|
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| Actual payroll | $30,000 |
| Unfavorable labor rate variance | 500 |
| Unfavorable labor efficiency variance | 2,500 |
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What is the entry to record the direct labor cost and variances?
| a. | Payroll 30,000 Labor rate variance 500 Labor efficiency variance 2,500 Accrued payroll 33,000 |
| b. | Work in process 27,000 Labor rate variance 500 Labor efficiency variance 2,500 Payroll 30,000 |
| c. | Work in process 30,000 Payroll 30,000 |
| d. | Work in process 27,000 Labor variances 3,000 Payroll 30,000 |
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African Charter For Internal Audit Of Cooperative Governance
Authors: Donfack MEKONTCHOU ROCHE
1st Edition
6205541777, 978-6205541777
