Question
Bodacious Corporation produced 100 units of Product AA. The total standard and actual costs for materials and direct labor for the 100 units of Product
Bodacious Corporation produced 100 units of Product AA. The total standard and actual costs for materials and direct labor for the 100 units of Product AA are as follows:
| Materials: | Standard | Actual | |||
| Standard: | 200 pounds at $3.00 per pound | $600 | |||
| Actual: | 220 pounds at $2.85 per pound | $627 | |||
| Direct labor: | |||||
| Standard: | 400 hours at $15.00 per hour | 6,000 | |||
| Actual: | 368 hours at $16.50 per hour | $6,072 | |||
What is the journal entry to record labor variances?
a.
Work in Process6,000
Labor Efficiency Variance552
Labor Rate Variance480
Payroll6,072
b.
Payroll6,072
Work in Process6,072
c.
Work in Process6,000
Labor Rate Variance552
Labor Efficiency Variance480
Payroll6,072
d.
Work in Process6,072
Payroll6,072
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Government Auditing Standards 2011 Revision
Authors: U. S. Government Accountability Office, Comptroller General Of The United States
1st Edition
1482311372, 978-1482311372
