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Gotay Corporation's Standard Wage Rate Is $12

Question 19

Multiple Choice

Gotay Corporation's standard wage rate is $12.00 per direct labor-hour (DLH) and according to the standards,each unit of output requires 5.8 DLHs.In December,4,900 units were produced,the actual wage rate was $11.00 per DLH,and the actual hours were 27,870 DLHs.The Labor Rate Variance for December would be recorded as a:


A) debit of $28,420.
B) credit of $28,420.
C) credit of $27,870.
D) debit of $27,870.

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