When a Journal Entry Is Made in a Standard Cost

When a journal entry is made in a standard cost system to record the liability for direct manufacturing labour costs, the difference between the debit to the work-in-process control account and the credit to the payroll payables is

A) only the efficiency variance.
B) only the rate variance.
C) the difference between the actual wage rate and the budgeted rate, times the actual hours.
D) the difference between the actual wage rate and the budgeted rate, times the budget hours.
E) the total of the price and efficiency labour variances.

Correct Answer:

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