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The finishing department of Mozart Company produced 25,000 units during November. The standard number of direct labor-hours per unit is two hours. The standard rate per hour is $37.80. During the month, 51,250 direct labor-hours were worked at a cost of $1,742,500.
Question a. Compute labor variances.
Question b. Using T-accounts, illustrate recording the labor data in a journal entry.
Question c. Using T-accounts, illustrate the journal entry to dispose of any variances (close to Cost of Goods Sold).
Open Ledger accounts (T-format or Running-balance format) for the above accounts and enter the balances as per the Trial Balance.Record the transactions listed below in the General Journal, using the accounts listed in the Trial Balance.
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