When the Actual Direct Labor-Hours Are Less Than the Standard

Multiple Choice

When the actual direct labor-hours are less than the standard direct labor-hours allowed for the actual output of the period, the journal entry would include:

A) Credit to Wages Payable; Credit to Labor Efficiency Variance
B) Credit to Work-In-Process; Credit to Labor Efficiency Variance
C) Credit to Wages Payable; Debit to Labor Efficiency Variance
D) Credit to Work-In-Process; Debit to Labor Efficiency Variance