Multiple Choice
Decena Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs. Information concerning the direct labor standards for the company's only product is as follows: During the year, the company assigned direct labor costs to work in process. The direct labor workers (who were paid in cash) worked 15,830 hours at an average cost of $18.50 per hour. The company calculated the following direct labor variances for the year:
Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.
When recording the direct labor costs, the Cash account will increase (decrease) by:
A) ($286,740)
B) ($292,855)
C) $286,740
D) $292,855
Correct Answer:

Verified
Correct Answer:
Verified
Q87: Bulluck Corporation makes a product with the
Q88: The standard labor rate per hour should
Q89: Herriot Corporation manufactures one product. It does
Q90: Bondi Corporation makes automotive engines. For the
Q91: Gipple Corporation makes a product that uses
Q93: Devoto Incorporated has provided the following data
Q94: Wangerin Corporation applies overhead to products based
Q95: Grub Chemical Corporation has developed cost standards
Q96: Fluegge Incorporated has provided the following data
Q97: Dews Corporation manufactures one product. It does