What is the correct journal entry to record direct labor when the actual labor mix is favorable and the total standard hours allowed is greater than the total actual hours worked?
A)Option A
B)Option B
C)Option C
D)Option D

Question

What is the correct journal entry to record direct labor when the actual labor mix is favorable and the total standard hours allowed is greater than the total actual hours worked? 
A)Option A 
B)Option B 
C)Option C 
D)Option D

Quizplus · Accepted Answer

Option B records the favorable direct labor variance by comparing the actual hours worked at the actual wage rate to the standard cost of the allowed hours. This results in a debit to Direct Labor Efficiency Variance account for the favorable variance and a credit to the Wages Payable account for the actual wages earned by the employees.

What Is the Correct Journal Entry to Record Direct Labor