Atlantic Manufacturing Company Uses Standard Costing Methodology in Their Journal $$\begin{array} { l l l l } \text { Hours per unit } & 0.5 & \text { Price per hour } & \$ 18.00\end{array}$$

Atlantic Manufacturing Company uses standard costing methodology in their journal entries and accounts. Standards for direct labor are as follows:
$$\begin{array} { l l l l } \text { Hours per unit } & 0.5 & \text { Price per hour } & \$ 18.00\end{array}$$
Actual direct labor for the month: 1,200 hours for a total cost of $24,000
Planned production for the month: 3,000 units
The journal entry to record the usage of direct labor would be to:

A) debit WIP $27,000, credit Manufacturing wages $24,000, credit Labor efficiency variance $2,400.
B) debit WIP $21,600, credit Manufacturing wages $24,000, debit Labor price variance $2,400.
C) debit WIP $21,600, credit Manufacturing wages $27,000, debit Labor efficiency variance $5,400.
D) debit WIP $27,000, credit Manufacturing wages $21,600, credit Labor efficiency variance $5,400.

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