Drop down options for 2 are: DL Efficiency Variance, DL Price Variance, Manufacturing Wages, Wages Payable and WIP Inventory. I have completed Requirement 3. I only need to figure out the journal entry for the assignment of direct labour to production.

During the week, Ned's french fry manufacturing facility incurred 2,200 hours of direct labour. Direct labourers were paid $12.35 per hour. The standard hourly labour rate is $11.80. Standards indicate that for the volume of output actually achieved, the factory should have used 2,300 hours. Record the following transactions using a standard cost accounting system: 1. The accumulation of labour costs 2. The assignment of direct labour to production Are the variances favourable or unfavourable? Explain. 1. Let's record the journal entry for the accumulation of labour costs. (Record debits first, then credits. Explanations are not required.) Journal Entry Date Debit Credit 27140 Accounts Work in Process Inventory Direct Labour Price Variance Direct Labour Efficiency Variance Wages Payable 1210 1180 27170 2. Let's record the journal entry for the assignment of direct labour to production. Journal Entry Date Accounts Debit Credit V Are the variances favourable or unfavourable? Explain. The price variance is . We can tell this in two ways: 1) Ned's had to pay per hour than the standard rate and 2) the variance account is The efficiency variance is V. We can tell this in two ways: 1) Workers spent V hours than the standard number of hours allowed for the actual production level and 2) the variance account is Choose from any list or enter any number in the input fields and then continue to the next question. Save for Later