Lewis Manufacturing Uses a Standard Cost System

question 124

Essay

Lewis 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 (not paid).Omit explanation.

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Definitions:

Standard Of Care

The standard of care refers to the degree of prudence and caution required of an individual who is under a duty of care.

Faulty Grading

Refers to incorrect or misleading assignment of quality levels to goods, particularly in the context of agricultural products or land.

Tort Action

A lawsuit based on an act or omission that leads to harm or injury to another and amounts to a civil wrong for which courts impose liability.

Parking Brake

A vehicle's mechanism that locks the wheels to prevent it from moving, typically used when the vehicle is parked.