Question
Buster Company uses a standard costing system. The following information pertains to direct labor for the month of June: Actual labor cost $106,250 Actual hours
Buster Company uses a standard costing system. The following information pertains to direct labor for the month of June:
| Actual labor cost | $106,250 |
| Actual hours used in the production of 14,500 units | 12,500 hours |
| Standard labor hours per unit | 0.80 hours |
| Standard labor rate | $8.80 |
What is the journal entry to record direct labor cost?
DR Work in Process $102,080
DR Labor efficiency variance $4,350
CR Labor rate variance $3,570
CR Wages Payable $110,000
DR Work in Process $102,080
DR Labor variance $4,170
CR Wages Payable $106,250
DR Work in Process $106,250
CR Wages Payable $106,250
DR Work in Process $106,250
DR Labor rate variance $3,750
CR Labor efficiency variance $7,920
CR Wages Payable $102,080
None of the answers listed is correct
DR Work in Process $102,080
DR Labor efficiency variance $7,920
CR Labor rate variance $3,750
CR Wages Payable $106,250
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Auditing Concepts For A Changing Environment
Authors: Larry E. Rittenberg, Bradley J. Schwieger
5th Edition
0324223102, 978-0324223101
