Question

Recording Standards in Accounts The Assembly Department produced 3,000 units of product during March. Each unit required 1.25 standard direct labor hours. There were 4,000 actual hours used in the Assembly Department during March at an actual rate of $11 per hour. The standard direct labor rate is $11.5 per hour. Assuming direct labor for a month is paid on the fifth day of the following month, journalize the direct labor in the Assembly Department on March 31. For a compound transaction, if an amount box does not require an entry, leave it blank. March 31 Check My Work 2 more Check My Work uses remaining. < Previous Next >

Answer 1

March 31. S $ 43.125 2,875 Work in process Direct labor time variance Direct Labor rate variance Wages payable $ S 2.000 44,000 Working notes: Wages payable = 4.000*$11 = $44.000 Direct labor time variance = (Actuval hours - standard hours)*Standard direct labor rate = (4.000 - (3,000*1.25))*$11.5 = (4.000 -3.750*$11.25 = $2.875 Unfavourable Direct labor rate variance = (Actuval rate - Standard rate )*Actuval direct labor hours = ($11-$11.5)*$4,000 = $2,000 Favourable Work in Process = $44.000+$2,000-$2.875 = $43.125