Question
Boomerang Corporation produced 100 units of Product AA190x. The total standard and actual costs for materials and direct labor for the 100 units of Product
Boomerang Corporation produced 100 units of Product AA190x. The total standard and actual costs for materials and direct labor for the 100 units of Product AA190x are as follows.
Direct 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. | Debit: Work in Process $6,072 Credit. Wages Payable $6,072 | |
b. | Debit: Wages Payable $6,072 Credit. Work in Process $6,072 | |
c. |
Debit: Work in Process $6,000 Debit: Labor Price Variance $552 Credit: Labor Quantity Variance $480 Credit: Wages Payable $6,072 | |
d. | Debit: Work in Process $6,000 Debit: Labor Quantity Variance $552 Credit: Labor Price Variance $480 Credit: Wages Payable $6,072 |
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