The Dexon Company makes and sells a single product called a Mip and uses a standard costing system. The following standards have been established for one unit of Mip: There were no inventories of any kind on August 1. During August, the following events occurred:
Purchased 15,000 board feet at the total cost of $24,000.
Used 12,000 board feet to produce 2,100 Mips.
Used 1,700 hours of direct labor time at a total cost of $20,060.
-To record the incurrence of direct labor costs and its use in production, the general ledger would include what entry to the Labor Efficiency Variance account?
A) $480 credit
B) $240 debit
C) $1,200 debit
D) $1,200 credit

Question

The Dexon Company makes and sells a single product called a Mip and uses a standard costing system. The following standards have been established for one unit of Mip:  There were no inventories of any kind on August 1. During August, the following events occurred:
  Purchased 15,000 board feet at the total cost of $24,000.
  Used 12,000 board feet to produce 2,100 Mips.
  Used 1,700 hours of direct labor time at a total cost of $20,060.
-To record the incurrence of direct labor costs and its use in production, the general ledger would include what entry to the Labor Efficiency Variance account?
A) $480 credit 
B) $240 debit 
C) $1,200 debit 
D) $1,200 credit

Quizplus · Accepted Answer

The Answer of The Dexon Company makes and sells a single product called a Mip and uses a standard costing system. The following standards have been established for one unit of Mip:  There were no inventories of any kind on August 1. During August, the following events occurred:
  Purchased 15,000 board feet at the total cost of $24,000.
  Used 12,000 board feet to produce 2,100 Mips.
  Used 1,700 hours of direct labor time at a total cost of $20,060.
-To record the incurrence of direct labor costs and its use in production, the general ledger would include what entry to the Labor Efficiency Variance account?
A) $480 credit 
B) $240 debit 
C) $1,200 debit 
D) $1,200 credit

The Dexon Company Makes and Sells a Single Product Called