Hazlette Inc., which produces a single product, has prepared the following stand
ID: 2358606 • Letter: H
Question
Hazlette Inc., which produces a single product, has prepared the following standard cost sheet for one unit of the product. Direct materials (8 pounds at $2.50 per pound) $20 Direct labor (3 hours at $12.00 per hour) $36 During the month of April, the company manufactures 230 units and incurs the following actual costs. Direct materials purchased and used (1,900 pounds) $4,940 Direct labor (700 hours) $8,120 Instructions Journalize the entries to record the materials and labor variances. (For multiple debit/credit entries, list amounts from largest to smallest e.g. 10, 5, 3, 2.)Explanation / Answer
Description
debit
credit
Raw material invenoty
1900 x2.50
4750
Material price variance
1900 x2.50
190
Accountable payable
4940
Work in process
4600
Material quantity
60 x2.50
150
Raw material inventory 1900 x2.50
4750
Factory Lbor 700 x12
8400
Wages payable 700 x11.60
8120
Labor price variance
700 x 0.40
280
Work in process
690 x12
8280
Labor quantity variance
10 x12
120
Factory
700 x12
8400
Description
debit
credit
Raw material invenoty
1900 x2.50
4750
Material price variance
1900 x2.50
190
Accountable payable
4940
Work in process
4600
Material quantity
60 x2.50
150
Raw material inventory 1900 x2.50
4750
Factory Lbor 700 x12
8400
Wages payable 700 x11.60
8120
Labor price variance
700 x 0.40
280
Work in process
690 x12
8280
Labor quantity variance
10 x12
120
Factory
700 x12
8400
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