Page 943 - Accounting Principles (A Business Perspective)
P. 943
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= -USD 3,000 (favorable)
b. An unfavorable materials usage or labor efficiency variance caused by carelessness or inefficiency may be
considered a loss and closed to Income Summary because the standard was attainable and the variance was
controllable.
c. The other answers incorrectly close the variance accounts. The variance accounts are closed to Cost of Goods
Sold.
Accounting Principles: A Business Perspective 944 A Global Text
