Bodacious Corporation produced 100 units of Product AA. The total standard and actual costs for materials and
Question:
Bodacious Corporation produced 100 units of Product AA. The total standard and actual costs for materials and direct labor for the 100 units of Product AA are as follows:
Materials: |
| Standard | Actual |
Standard: | 200 pounds at $3.00 per pound | $600 |
|
Actual: | 220 pounds at $2.85 per pound |
| $627 |
|
|
|
|
Direct labor: |
|
|
|
Standard: | 400 hours at $15.00 per hour | 6,000 |
|
Actual: | 368 hours at $16.50 per hour |
| 6,072 |
What is the journal entry to record labor variances?
Select one:
a. Work in Process 6,072
Payroll 6,072
b. Payroll 6,072
Work in Process 6,072
c. Work in Process 6,000
Labor Rate Variance 552
Labor Efficiency Variance 480
Payroll 6,072
d. Work in Process 6,000
Labor Efficiency Variance 552
Labor Rate Variance 480
Payroll 6,072
Bodacious Corporation produced 100 units of Product AA. The total standard and actual costs for materials and direct labor for the 100 units of Product AA are as follows:
Materials: |
| Standard | Actual |
Standard: | 200 pounds at $3.00 per pound | $600 |
|
Actual: | 220 pounds at $2.85 per pound |
| $627 |
|
|
|
|
Direct labor: |
|
|
|
Standard: | 400 hours at $15.00 per hour | $6,000 |
|
Actual: | 368 hours at $16.50 per hour |
| $6,072 |
What is the labor efficiency variance for Bodacious Corporation?
Select one:
a. $480 (U)
b. $480 (F)
c. $552 (U)
d. $552 (F)
Introduction to Management Accounting
ISBN: 978-0133058789
16th edition
Authors: Charles Horngren, Gary Sundem, Jeff Schatzberg, Dave Burgsta