Question

A large labor efficiency variance is prorated to which of the following at year-end?

cost of goods sold - WIP inventory - FG Inventory

a. no, no, no
b. no, yes, yes
c. yes, no , no
d. yes, yes, yes

Answer 1

The large labor efficiency variance is not prorated to any of the given options at year-end.

Step-by-step explanation:

The large labor efficiency variance is prorated to the following at year-end: no, no, no. This means that the variance is not allocated to the cost of goods sold, work-in-progress (WIP) inventory, or finished goods (FG) inventory.