Use the following information for the next 2 questions.
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 the direct material efficiency variance allocated to work in process inventory is
A) Credit $26,000
B) Credit $24,375
C) Debit $17,333
D) Debit $8,125

Question

Use the following information for the next 2 questions.
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 the direct material efficiency variance allocated to work in process inventory is
A) Credit $26,000 
B) Credit $24,375 
C) Debit $17,333 
D) Debit $8,125

Quizplus · Accepted Answer

Direct material efficiency variance is a favorable variance when actual material cost is less than standard material cost. In this case, the variance is $26,000, which is a credit to Work in Process Inventory.

Use the Following Information for the Next 2 Questions