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)a
B)b
C)c
D)d

Question

Quizplus · Accepted Answer

When the actual labor mix is favorable and the total standard hours allowed is greater than the total actual hours worked, it means that fewer direct labor hours were used than what was budgeted. The entry to record this is:
Direct Labor Efficiency Variance (debit)
Wages Payable (credit)

What Is the Correct Journal Entry to Record Direct Labor