Prepare a journal entry to record direct labor costs

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Reference no: EM13518358

The following direct labor standards have been established for product N30A:

Standard direct labor-hours

3.3 hours per unit of N30A

Standard direct labor wage rate

$10.50 per hour

The following data pertain to the most recent month's operations during which 400 units of product N30A were made:

Actual direct labor-hours worked

1,100

Actual direct labor wages paid

$11,385

Required:

a. What was the labor rate variance for the month?

b. What was the labor efficiency variance for the month?

c. Prepare a journal entry to record direct labor costs during the month, including the direct labor variances.

Reference no: EM13518358

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