In recording the accrual of Wages, if less-skilled workers are employed than were planned for, the entry would most likely include a:
A) CREDIT to Direct Labor Rate Variance
B) DEBIT to Direct Labor Rate Variance
C) DEBIT to Direct Labor Flexible Budget Variance
D) CREDIT to Direct Labor Efficiency Variance
E) None of the above

Question

Quizplus · Accepted Answer

If less-skilled workers are employed, they are likely paid at a lower rate than planned, resulting in a favorable direct labor rate variance, which is recorded as a credit.

In Recording the Accrual of Wages, If Less-Skilled Workers Are