Favorable direct manufacturing labor efficiency variances are ________.
A) always credits
B) always debits
C) debited to the Work-in-Process Control account
D) debited to the Wages Payable Control account

Question

Quizplus · Accepted Answer

According to the variable descriptions, direct manufacturing labor efficiency variance would be calculated as AQ(BP-AQ), which means that if the actual quantity of labor used is less than the budgeted quantity for the same level of production, the variance will be favorable or a credit.

Favorable Direct Manufacturing Labor Efficiency Variances Are ________