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Managerial Accounting

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Moderate

Recording Variances

MGRACT-LH5RXE

In a standard costing system:

A

the Labor Rate Variance account would be debited for a favorable variance.

B

the Labor Efficiency Variance would appear as a credit.

C

the Labor Rate Variance and Labor Efficiency Variance accounts would either both be debited or both credited.

D

the standard cost of direct labor is debited to Work in Process Inventory.