Question
Information relating to direct labor for the Newstead Company follow: Actual direct labor hours 5,600 Standard direct labor hours 5,400 Total direct labor per payroll
Information relating to direct labor for the Newstead Company follow:
Actual direct labor hours 5,600
Standard direct labor hours 5,400
Total direct labor per payroll $53,200
Standard labor rate per hour $9.00
The entry to record the direct labor cost is:
a. Work in process 53,200
Labor rate variance 2,800
Labor efficiency variance 1,800
Payroll 48,600
b. Work in process 50,400
Labor rate variance 2,800
Payroll 53,200
c. Work in process 48,600
Labor rate variance 2,800
Labor efficiency variance 1,800
Payroll 53,200
d. Work in process 51,400
Labor efficiency variance 1,800
Payroll 53,200
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Auto Body And Repair Industry IRS Audit Techniques Guide
Authors: Internal Revenue Service
1st Edition
1304131661, 978-1304131669
