Abbott Suit (ASC) corporation manufactures BOTH nylon AND cotton jogging suits.

On 1/1/19, Erin Rogers ESTIMATES the following fixed costs:

Accountants salary $10,000

Depreciation on factory equipment $4,000

Rent on Manufacturing Facility $6,000

ABBOTT SUIT CORPORATION USES DIRECT LABOR HOURS TO ALLOCATE DEPRECIATION AND RENT.

Nylon Jogging Suits Cotton Jogging Suits

Std.qty/suit Std.price/input Std.qty/suit Std.price/input

Direct Materials 2.5 yds/suit $20/yd 4 yds/suit $15/yd

Direct Labor 5 dlh/suit $10/dlh 4 dlh/suit $15/dlh

VOH:utilities/grease/janitor 5 mh/suit $10/mh 8 mh/suit $10/mh

Var.cost/suit =$150/nylon suit Var cost/suits=$200/cotton suit

1. ASC workers worked the following during January (IN CASH).

Nylon workers (260 dlh*$15/dlh);

Cotton workers (300 dlh*$20/dlh);

Janitor wages (100 hours for a total of $1,000)

Accountant (200 hours for a total of $2,000).

Give the journal entry for this transaction and include ANY direct labor-related variances. SHOW WORK