The Following Direct Labor Data Pertain to the Operations of Murray

question 90

Essay

The following direct labor data pertain to the operations of Murray Industries for the month of November: $\begin{array}{ll}\text { Standard labor rate } &&\$ 15.00 \text { per hr. }\\\text { Actual hours incurred }& 9,000 \\\end{array}$ The standard cost card shows that 2.5 hours are required to complete one unit of product. The actual labor rate incurred exceeded the standard rate by 10%. Four thousand units were manufactured in November.
Instructions
(a) Calculate the price quantity and total labor variances.
(b) Journalize the entries to record the labor variances.

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Definitions:

Algorithmic Method

a systematic, step-by-step procedure or set of rules used to solve a problem or accomplish a task.

Mnemonic Device

A tool that aids in the memorization of information by associating easy-to-remember constructs with complex data.

Systematic

An approach characterized by step-by-step procedures aimed at ensuring thoroughness and accuracy in achieving a specific goal or solving a problem.

Heuristics

Mental shortcuts or rules of thumb that simplify decision making, often used when facing complex problems or incomplete information.