Robinson Manufacturing uses a standard cost system
The direct labor cost standard is $18.00 per direct labor hour. The direct labor efficiency standard is 0.5 direct labor hour per unit. Actual direct labor for the month is 1,200 hours for a total cost of $24,000. Production for the month is 3,000 units. Give the journal entry to record direct labor.
What will be an ideal response
Work-in-Process Inventory 27,000
(0.5 DLHr/unit x $18/DLHr x 3,000 units)
Direct Labor Cost Variance 2,400
Direct Labor Efficiency Variance 5,400
Wages Payable 24,000
Direct Labor Cost Variance:
(AC - SC) x AQ
($20 - $18 ) x (1,200 ) = $2,400 unfavorable
Direct Labor Efficiency Variance:
(AQ - SQ) x SC
(1,200 - 1,500 ) x $18 = $5,400 favorable
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