The journal entry below: indicates that:
A)the total labor variance was $800, unfavorable.
B)employees received an unexpected rate increase during the period.
C)more labor time was required to complete the output of the period than was allowed at standard.
D)Work in Process valued at $25,000 was completed and transferred to Finished Goods.

Question

The journal entry below:  indicates that:
A)the total labor variance was $800, unfavorable. 
B)employees received an unexpected rate increase during the period. 
C)more labor time was required to complete the output of the period than was allowed at standard. 
D)Work in Process valued at $25,000 was completed and transferred to Finished Goods.

Quizplus · Accepted Answer

The journal entry code TB2460_00 indicates that there was a labor variance, which means that actual labor time exceeded the standard labor time allowed for the output. Therefore, more labor time was required to complete the output than was allowed at standard. The entry does not provide information about a rate increase or the completion and transfer of work in process to finished goods.

The Journal Entry Below: Indicates That