Gamblian Company's Standard Labor Cost of Producing One Unit of Product

question 95

Essay

Gamblian Company's standard labor cost of producing one unit of product is 2 hours at the rate of $14.00 per hour. During February, 39,000 hours of labor are incurred at a cost of $13.80 per hour to produce 19,000 units of product.
Instructions
(a) Compute the labor price and labor quantity variances.
(b) Journalize the incurrence of the labor costs and the assignment of direct labor to production, assuming a standard cost system is used.

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Definitions:

Arbitration

A method of resolving disputes outside of court, where an impartial third party makes a decision that is binding on the parties.

Trust and Rely

The expectation and confidence in someone’s or something’s ability, truth, or reliability.

Move Forward Together

A collaborative approach where a group or team works collectively towards common goals or objectives, emphasizing unity and progress.

Measurable Objectives

Specific, quantifiable, achievable targets set during the planning phase to assess progress towards a goal.