Refer to your answer for Exercise 1031. Set up T-accounts, and post the journal entries to the
Question:
In Exercise 10 31,
The director of cost management for Odessa Company uses a statistical control chart to help management determine when to investigate variances. The critical value is 1 standard deviation. The company incurred the following direct- labor efficiency variances during the first six months of the current year.
The standard direct-labor cost during each of these months was $ 38,000. The controller has estimated that the firms monthly direct- labor variances have a standard deviation of $ 1,900.
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Managerial Accounting Creating Value in a Dynamic Business Environment
ISBN: 978-0078025662
10th edition
Authors: Ronald Hilton, David Platt
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