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.

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Definitions:

Wear and Tear

The damage or deterioration caused by regular use or aging.

Circadian Rhythm

An innate process that governs the rhythm of sleep and wakefulness, repeating about every 24 hours.

Biorhythm

Theoretical cycles believed to affect various physical, emotional, and intellectual conditions in humans.

Euclidean Rhythm

A mathematical algorithm that evenly distributes a specified number of beats or pulses across a larger number of time slots, often used in music composition.