debit+credit+variance+account

http://www.accountingcoach.com/standard-costing/explanation/6 ** Direct Materials Price Variance ** Let's begin by assuming that the account Direct Materials Price Variance has a debit balance of $3,500 at the end of the accounting year. You can see from the following journal entry (a hypothetical entry which assumes that all of the direct materials were purchased at one time) that a debit balance is an unfavorable variance:



It is the same as the Labor variance. For example: A favorable Labor rate variance based on the above data assumptions:

Account Name Debit Credit - wages control account 3500 labour rate variance account 3500

Or Wages (@ standard cost) 13500 labour rate variance account 3500 Accounts Payable (Actual Cost) 10000

A favorable Labor efficiency variance based on the above data assumptions:

Account Name Debit Credit - Work in progress control account 3500 labour efficiency variance account 3500

Or Wages (@ standard cost) 13500 labour Efficiency variance account 3500 Accounts Payable (Actual Cost) 10000