Recording Standards in Accounts The Assembly Department produced 4,000 units of

Question

Recording Standards in Accounts

The Assembly Department produced 4,000 units of product during March. Each unit required 1.75 standard direct labor hours. There were 7,500 actual hours used in the Assembly Department during March at an actual rate of $12.5 per hour. The standard direct labor rate is $13 per hour.

Assuming direct labor for a month is paid on the fifth day of the following month, journalize the direct labor in the Assembly Department on March 31. For a compound transaction, if an amount box does not require an entry, leave it blank.

Explanation / Answer

31-Mar Work in Process 91000 =4000*1.75*13 Direct Labor Time Variance 6500 =13*(7500-4000*1.75) Direct Labor Rate Variance 3750 =7500*(13-12.5) Wages Payable 93750 =7500*12.5

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