The journal entry below: indicates that:
A)the total labor variance was $800,unfavorable.
B)employees received an unexpected rate increase during the period.
C)more labor time was required to complete the output of the period than was allowed at standard.
D)Work in Process valued at $25,000 was completed and transferred to Finished Goods.

Question

The journal entry below:  indicates that:
A)the total labor variance was $800,unfavorable. 
B)employees received an unexpected rate increase during the period. 
C)more labor time was required to complete the output of the period than was allowed at standard. 
D)Work in Process valued at $25,000 was completed and transferred to Finished Goods.

Quizplus · Accepted Answer

The letter code "TB" typically indicates a time ticket or labor report, and the entry shows a variance code "33" which suggests a labor time variance. The code "fe_33" further indicates that the variance was unfavorable. Therefore, choice C is correct as it suggests that more labor time was required to complete the output of the period than was allowed at standard. The journal entry does not provide any information to support any of the other choices.

The Journal Entry Below: Indicates That