Decena Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs. Information concerning the direct labor standards for the company's only product is as follows:
During the year, the company assigned direct labor costs to work in process. The direct labor workers (who were paid in cash) worked 15,830 hours at an average cost of $18.50 per hour. The company calculated the following direct labor variances for the year:
Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.
-When recording the direct labor costs,the Work in Process inventory account will increase (decrease) by:
Definitions:
Q44: The variable overhead rate variance for the
Q49: Gallucci Incorporated makes a single product--a critical
Q67: The division's turnover used to compute ROI
Q70: The wages and salaries in the planning
Q96: Carattini Incorporated makes a single product--an electrical
Q113: The raw materials quantity variance for the
Q144: The variable overhead efficiency variance is:<br>A) $1,645
Q146: Eastern Company uses a standard cost system
Q165: The Haney Corporation has a standard costing
Q167: The budget variance for May is:<br>A) $2,070