The following information pertains to Genie Company:

Standard materials allowed $12,000 

Unfavorable materials price variance 2,000 

Favorable materials usage variance 1,000 Actual payroll $20,000 

Unfavorable labor rate variance 1,500 

Unfavorable labor efficiency variance 500

What is the entry to record the direct materials cost and variances, assuming that the price variance is recorded when the materials are put into production?

A Materials 12,000 Materials price variance 2,000 Accounts payable 14,000

B. Work in process 12,000 Materials quantity variance 1,000 Materials price variance 2,000 Materials 11,000

C. Work in process 12,000 Materials price variance 2,000 Materials quantity variance 1,000 Materials 13,000

D. Work in process 11,000 Materials price variance 2,000 Materials 13,000

Answer rating: 100% (QA)

Answer Correct Answer Option C DEBIT Work in process 12000 ... View the full answer