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Appendix 9B - Appendix 9B Journal Entries to Record...

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Appendix 9B - Journal Entries to Record Variances Appendix 9B Journal Entries to Record Variances True / False Questions 1. A favorable labor efficiency variance would result in a credit balance in the labor efficiency variance account. True False 2. A favorable materials quantity variance would appear as a debit in a journal entry. True False Multiple Choice Questions 3. When the actual price paid on credit for a raw material is less than its standard price, the journal entry would include: A. Debit to Raw Materials; Credit to Materials Price Variance B. Debit to Accounts Payable; Credit to Materials Price Variance C. Debit to Raw Materials; Debit to Materials Price Variance D. Debit to Accounts Payable; Debit to Materials Price Variance 4. When the actual amount of a raw material used in production is less than the standard amount allowed for the actual output, the journal entry would include: Appendix 9B-1
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Appendix 9B - Journal Entries to Record Variances 5. Drake Company purchased materials on account. The entry to record the purchase of materials having a standard cost of $1.50 per pound from a supplier at $1.60 per pound would include a: 6. When the actual wage rate paid to direct labor workers is less than the standard wage rate, the journal entry would include: 7. 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 Appendix 9B-2
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Appendix 9B - Journal Entries to Record Variances
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