Naches Co Assigned Direct Labor Cost to Its Products in May

question 159

Essay

Naches Co. assigned direct labor cost to its products in May for 1,300 standard hours of direct labor at the standard $8 per hour rate. The direct labor rate variance for the month was $200 favorable and the direct labor efficiency variance was $150 favorable. Prepare the journal entry to charge Work in Process Inventory for the standard labor cost of the goods manufactured in May and to record the direct labor variances. Assuming that the direct labor variances are immaterial, prepare the journal entry that Naches would make to close the variance accounts.

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Definitions:

Protective Factors

Environmental and personal factors that are the source of children’s resilience in the face of hardship.

High Self-esteem

The positive evaluation of oneself and one's abilities, often associated with greater happiness and success in various areas of life.

Secure Attachment

A strong and positive emotional bond between an individual and a caregiver, characterized by trust and a sense of safety.

Positive Peer Relations

Interactions among peers that are characterized by mutual respect, empathy, and support, contributing to social and emotional development.