Castanada Corporation has provided the following data concerning its direct labor costs for August:
-The Labor Rate Variance for August would be recorded as a:
A) Debit of $18,912
B) Credit of $18,912
C) Credit of $17,136
D) Debit of $17,136

Question

Castanada Corporation has provided the following data concerning its direct labor costs for August: 
-The Labor Rate Variance for August would be recorded as a:
A) Debit of $18,912 
B) Credit of $18,912 
C) Credit of $17,136 
D) Debit of $17,136

Quizplus · Accepted Answer

The Labor Rate Variance is unfavorable, meaning actual labor costs were higher than expected, resulting in a debit of $18,912.

Castanada Corporation Has Provided the Following Data Concerning Its Direct