Harrison Corporation's Direct Labor Rate Variance for May Was $200

question 159

Essay

Harrison Corporation's direct labor rate variance for May was $200 favorable,and the direct labor efficiency variance was $150 unfavorable.The total direct labor payroll for the month was $10,050.
Required: (a)Prepare the summary journal entry (May 31)to accrue payroll costs,to charge Work in Process Inventory for the standard labor cost of the goods manufactured in May,and to record the direct labor variances for the month.
(b)Assuming that the direct labor variances are not material,prepare the journal entry that Harrison would make to close the variance accounts.

---

Definitions:

Ketone Bodies

Metabolic byproducts produced from the breakdown of fatty acids, used as an energy source when glucose is scarce.

Diabetes Mellitus

Metabolic disease in which carbohydrate use is reduced and that of lipid and protein enhanced; caused by a deficiency of insulin or an inability to respond to insulin and is characterized, in more severe cases, by hyperglycemia, glycosuria, water and electrolyte loss, ketoacidosis, and coma.

Proton Pump

An integral membrane protein that builds up a proton gradient across a biological membrane by actively transporting protons.

Electron Transport Chain

An assembly of complex molecules that facilitate the movement of electrons from donating molecules to accepting ones using redox reactions, and this movement is linked with the relocation of protons (H+ ions) through a membrane.