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Information on Hanley's direct labor costs for January 2010 is as follows:
Actual direct labor rate $7.50Standard direct labor hours allowed 11,000Actual direct labor hours 10,000Direct labor rate variance $5,500 F
a. Compute the standard direct labor rate in January.
b. Compute the labor effi ciency variance in January.
c. Prepare the journal entry to accrue direct labor cost and to record the labor variances for January.
d. Prepare the journal entry to dispose of the January labor variances, assuming that they are insignifi cant.
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LONE PINE COMPANY Statement of Income and Retained Earnings For the Year Ending December 31,20X2 ($000 Omitted) Net Sales* $36,000 Less: Cost of Goods Sold $20,000 Selling Expense 6,000 Administrative Expense 4,000 Interest Expense 400
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