Journalize the following transactions for Shelton, Inc.
(a) | Incurred direct labor costs of $23,040 for 3,200 hours. The standard labor cost was $24,160. | |
(b) | Assigned 3,200 direct labor hours costing $23,040 to production. Standard hours were 3,380. |
Standard hours. = 3200
Standard value. = $ 24,160
Standard rate. = $ 24,160/3200. = $ 7.55 per hour
Actual hours. = 3200
Actual value. = $ 23,040
Actual rate. = $ 7.2 Per hour
Direct labour price variance. = (7.55-7.2)*3200. = $1,120 F
Direct labour efficiency variable. = (3,380-3,200)*7.2
= 1,296 F
a). | Work in process inventory | $24,160 | |
Direct labour rate variance | $1,120 | ||
Direct labour payable | $23,040 | ||
b). | Work in process inventory(3,380*7.2) | $24,336 | |
Direct labour efficiency variance | $1,296 | ||
Direct labour payable | $23,040 |
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