Direct labor worker exceeding standard wage rate


Question: When actual wage rate paid to direct labor worker exceeds the standard wage rate, the journal entry would included:

1-Debit to wages payable;credit to labor rate variance

2-Debit to work in process;credit to labor rate variance

3-Debit to wages payable;debit to labor rate variance

4-Debit to work in process; debit to labor rate variance

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Accounting Basics: Direct labor worker exceeding standard wage rate
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