Use the following information for the next 2 questions.
Keyport, Inc. uses a standard job cost system. The standard price for direct material is $15 per ounce, and Keyport used 60,000 ounces this period. The standard quantity allowed for direct materials this period was 58,000 ounces. The standard price for direct labor is $9 per hour, and Keyport used 5,000 direct labor hours, at an actual cost of $10 per hour this period. The standard quantity allowed for direct labor this period was 5,200 hours.
-The entry to record the usage of direct labor would include a
A) Debit to Direct labor efficiency variance for $1,800
B) Credit to Work in process inventory for $3,200
C) Debit to Direct labor price variance for $5,000
D) Debit to Accrued payroll for $3,200

Question

Quizplus · Accepted Answer

The direct labor price variance is calculated as (Actual Rate - Standard Rate) x Actual Hours = ($10 - $9) x 5,000 = $5,000.

Use the Following Information for the Next 2 Questions