The Odle Company Makes and Sells a Single Product Called

Multiple Choice

The Odle Company makes and sells a single product called a Kitt. Odle uses a standard costing system. Each Kitt has a standard cost of 5 pounds of material at $12 per pound and 0.9 direct labor-hours at $15 per hour. There were no inventories of any kind on June 1. During June, the following events occurred:

• Purchased 17,000 pounds of material at a total cost of $190,000.
• Used 15,000 pounds of material to produce 2,400 Kitts.
• Used 1,900 hours of direct labor time at a total cost of $38,000.
-To record the incurrence of direct labor cost and its use in production,the general ledger would include what kind of entry to the Labor Efficiency Variance account?

A) $7,500 credit
B) $5,600 debit
C) $5,600 credit
D) $3,900 credit