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snowga snowga
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A month ago
The following information is available for Haven Industries:

Actual production14,000 units
Budgeted production14,400 units
Direct labor:
  Standard4 hours per unit at $10 per hour
  Actual54,720 hours at $9.80 per hour

Which of the following is the correct journal entry to record the direct labor payroll?

Wages Payable560,000
    Direct Labor Efficiency Variance12,800
    Direct Labor Rate Variance10,944
    Work in Process Inventory536,256


Work in Process Inventory536,256
Direct Labor Efficiency Variance12,800
Direct Labor Rate Variance10,944
    Wages Payable560,000


Work in Process Inventory560,000
    Direct Labor Efficiency Variance12,800
    Direct Labor Rate Variance10,944
    Wages Payable536,256


Wages Payable536,256
Direct Labor Efficiency Variance12,800
Direct Labor Rate Variance10,944
    Work in Process Inventory560,000
Textbook 

Managerial Accounting


Edition: 4th
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eminemluvr87eminemluvr87
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A month ago
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More solutions for this book are available here
Work in Process Inventory560,000
    Direct Labor Efficiency Variance12,800
    Direct Labor Rate Variance10,944
    Wages Payable536,256


Work in Process Inventory: 14,000 × 4 × $10 = $560,000 debit;
Wages Payable: 54,720 × $9.80 = $536,256 credit;
Direct Labor Efficiency Variance: [(14,000 × 4) - 54,720] × $10 = $12,800 credit;
Direct Labor Rate Variance: $560,000  ̶  $12,800 - $536,256 = $10,944 credit
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