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.

---

Definitions:

Tort

A wrongful act or an infringement of a right (other than under contract) leading to civil legal liability.

Public Wrong

Acts or offenses that violate laws established to protect the public and maintain social order, dealt with through criminal justice system.

Criminal Suit

A legal action brought against an individual or organization accused of committing a crime.

Private Wrong

A legal injury or violation affecting an individual or a specific entity, as opposed to the public or society at large.