Mate Corporation's standard wage rate is $11.90 per direct labor-hour (DLH) and according to the standards, each unit of output requires 4.5 DLHs. In May, 2,900 units were produced, the actual wage rate was $11.50 per DLH, and the actual hours were 15,530 DLHs.
-In the journal entry to record the incurrence of direct labor costs in May,the Work in Process entry would consist of a:
A)credit of $155,295.
B)debit of $155,295.
C)credit of $178,595.
D)debit of $178,595.

Question

Quizplus · Accepted Answer

Direct labor costs are debited to Work in Process, so the entry would involve a debit. The amount of direct labor costs incurred in May is not given in the question, so there is no way to determine the exact dollar amount.

Mate Corporation's Standard Wage Rate Is $11