Question

CALCULATOR FULL SCREEN PRINTER VERSION BACK NEXT Brief Exercise 24-09 Journalize the following transactions for Shelton, Inc. (a) (b) Incurred direct labor costs of $24,380 for 4,600 hours. The standard labor cost was $25,990. Assigned 4,600 direct labor hours costing $24,380 to production. Standard hours were 4,780. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round per unit values to 2 decimal places, e.g. 52.75 and final answers to o decimal places, e.g. 52.) Debit Credit No. Account Titles and Explanation (a) (b) SHOW LIST OF ACCOUNTS LINK TO TEXT

Answer 1

Below is the Answer provided in screen shot for both the transactions:

$25,990 1 Factory Labour Dr To Labour rate variance To Factory wages payable (Being direct labor costs incurred) $1,610 $24,380 2 Work in process Inventory $27,007 To Labour Efficiency Variance To Factory Labour (Being direct labor costs assigned to production) $1,017 $25,990 AR - 5.3 SR - 5.65 AH - 4600 $1,610 Labor Rate Variance = (SR - AR) X AH Rate Incurred $24,380 for 4,600 hours. Variance Standard labour cost was 25,990 Labor Efficiency Variance = (SH - AH) X SR Assigned 4,600 direct labour hours Efficiency costing 24,380 to production. Standard Variance hours were 4,780 SH -4,780 AH - 4600 SR - 5.65 $1,017 Total Variance = Rate Variance + Efficiency Variance Actual cost - Factory wages payable Standard Cost-Work-in Process Inventory Actual Use @standard rate - Control Account & Variance