Managerial Accounting

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Analyzing Performance Using Standard Costs for ATVs

MGRACT-LEMW41

Solar Inc incurred direct labor costs of \$36,700 when the standard labor cost was \$35,000 for assembly labor to manufacture ATVs. What should the entry be for the labor?

A

Credit to factory labor \$35,000

B

Debit Work In Progress \$35,000

C

Credit to factory labor \$36,700;

D

Debit to factory labor \$36,700