Use the following information for the next 5 questions.
Mason, Inc. uses a standard costing system. Overhead costs are allocated based on direct labor hours. The standard variable overhead and fixed overhead rates are $1 and $5 per direct labor hour, respectively. Data relevant for the current period include:
-Given the following account balances at the end of the first year of operations: Assuming that variances are considered material, the entry and amount of direct labor variances allocated to the Finished Goods Inventory is
A) Credit $3,740
B) Debit $2,160
C) Credit $770
D) Debit $3,960

Question

Use the following information for the next 5 questions.
Mason, Inc. uses a standard costing system. Overhead costs are allocated based on direct labor hours. The standard variable overhead and fixed overhead rates are $1 and $5 per direct labor hour, respectively. Data relevant for the current period include: 
-Given the following account balances at the end of the first year of operations:  Assuming that variances are considered material, the entry and amount of direct labor variances allocated to the Finished Goods Inventory is
A) Credit $3,740 
B) Debit $2,160 
C) Credit $770 
D) Debit $3,960

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The Answer of Use the following information for the next 5 questions.
Mason, Inc. uses a standard costing system. Overhead costs are allocated based on direct labor hours. The standard variable overhead and fixed overhead rates are $1 and $5 per direct labor hour, respectively. Data relevant for the current period include: 
-Given the following account balances at the end of the first year of operations:  Assuming that variances are considered material, the entry and amount of direct labor variances allocated to the Finished Goods Inventory is
A) Credit $3,740 
B) Debit $2,160 
C) Credit $770 
D) Debit $3,960

Use the Following Information for the Next 5 Questions