If an Analysis Shows an Unfavorable Labor Rate Variance of $18,000

Multiple Choice

If an analysis shows an unfavorable labor rate variance of $18,000 and a favorable labor efficiency variance of $10,000,the entry to record the cost of direct labor and related variances would include:

A) a debit to Labor Rate Variance for $18,000.
B) a credit to Work in Process inventory for $18,000.
C) a debit to Labor Efficiency Variance for $10,000.
D) a debit to Cost of Goods Sold for $10,000.
E) None of the answer choices is correct.